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Problem #3 Jane Botosan operates a bed and breakfast hotel in a resort area near Lake Michigan. Depreciation on the hotel is $60,000 per year.
Problem #3 Jane Botosan operates a bed and breakfast hotel in a resort area near Lake Michigan. Depreciation on the hotel is $60,000 per year. Jane employs a maintenance person at an annual salary of $41,000 and a cleaning person at an annual salary of $24,000. Real estate taxes are $10,00 breakfast. Other costs are laundry and cleaning service at the cost of food which is $5 per person per night 0 per year. The rooms rent at an average price of $60 per person per night including Instructions (show your work for all calculations) (a) Calculate Contribution Margin per unit. (b) Calculate Break-even point in units. (c) Calculate Contribution Margin Ratio. (d) Calculate Break-even point in sales
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