Part1: (20%) Explain the concept with the theory and the application of the CVP analysis and the Breakeven point. Part 2: Practical case: (80%) SeaV is a bed and breakfast hotel near Salmiya. Depreciation on the hotel is $45,000 per year. The hotel employs a maintenance person at an annual salary of $27,000 and a cleaning person at an annual salary of $18,000. Real estate taxes are $15,000 per year. The rooms rent at an average price of $45 per person per night. Other costs are laundry and cleaning service at a cost of $5 per person per night and the cost of food, which is $6 per person per night. a) Determine the number of rentals and the sales revenue the hotel needs to break even using the contribution margin technique. b) Find the Breakeven point using the graphical method and explain the different areas in the graph. c) If the current level of rentals revenue is KD180,000, by what percentage can rentals decrease before the hotel has to worry about having a net loss d) What is the level of rentals needed to earn a target profit of KD30,000. c) The hotel is considering upgrading the breakfast service to attract more business and increase prices. This will cost an additional KD3 for food costs per person per night. The hotel management feel they can increase the room rate to KD50 per person per night. Determine the number of rentals and the sales revenue the hotel needs to break even if the changes are made. f) Create a scenario to analyze the sensitivity to changes in one of the key variables (e.g., price, variable cost, fixed cost, sales volume), and evaluate how a 10% increase or decrease in these variables would affect profitability