Financial management chapter 7

NUMBER 2

The 100-room limited-service Pepper Inn has an ADR of $80 and variable costs per room sold of $15. Assume there is no other sales activity. Its monthly fixed costs total $100,000 Required: 1. How many rooms must be sold to break even? 2. What day of the month does it break even if it averages a paid occupancy percentage of 60 percent? Assume all 100 rooms are available for sale each day