Hotel Sydney Ltd is a hotel located near Sydney NSW. For one night accommodation per person, the hotel charges $95. The hotel estimates that the variable cost per person is $45, which includes food and room services. The fixed cost is estimated to be $65,000 per year.

• Required: Calculate
• a) The annual breakeven point in dollars .
• b) Assuming the motel targets a net profit of $65,000 a year before tax, calculate the number units of service required to reach this target.