Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
I need help asap thanks 9. (9 marks) (For this question you must show your work!) A 100-room motel has an average room rate of
I need help asap thanks 9. (9 marks) (For this question you must show your work!) A 100-room motel has an average room rate of $118. Its fixed costs are $730,000 a year, and its variable costs total $525,600 at an average occupancy of 80% a. What is the motel's breakeven occupancy percentage? b. How many rooms should they sell in a year to provide an annual operating income of $365,000? c. What occupancy percentage is required to have annual operating income of $365,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started