Evening Star has 300 rooms and charges $40 per room per night. Summer is relatively short and
Question:
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Evening Star has 300 rooms and charges $40 per room per night. Summer is relatively short and isdefined as June, July, and August. All other months are designated as winter months. A monthconsists of 30 days for making calculations. Maximum capacity for a month would be 9,000 roomdays (300 rooms 30 days)Required:1) Compute the MAXIMUM operating income that can be expected for ONE summer month andONE winter month2) What is the breakeven point in terms of number of rooms (BE Unit) for the summer season?For the winter season? Also state the breakeven point as a percentage of total occupancyfor both summer and winter.3) Based on advanced reservations and normal expectations, Evening Star Motel plans for5,000 room days in August. Determine the estimated operating income for August. Alsodetermine the percentage of occupancy for August.
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