Problem 12 The Myer Motel (MM), a rooms-only fifty-room lodging operation, has a cost structure as follows: Monthly fixed costs = $20,000 Variable costs/room sold = $20 ADR = $60 Average Tax Rate = 20 percent Required: 1 What is MM's CMR? 2. What is MM's breakeven point? (in rooms sold) 3. If MM is to make $10,000 of monthly profit (after tax), what must its total revenue be? 4. If the MM makes $10,000 of monthly profit during June, what day of the month does it break even? (Assume the number of rooms sold are the same each day.) 5. If MM's variable costs increased by 50 percent, how much must its ADR increase, all other things being the same