Q$1$: Cost Volume Profit Analysis.

As part of their application for a loan to buy Lakeside Farm, a property they hope to develop as a

bed$-$and$-$breakfast operation, the prospective owners have projected:

Monthly fixed cost $($loan payment, taxes, insurance, maintenance$),$$$7500$

Variable cost per occupied room per night

$$25$

Revenue per occupied room per night

$$85$

a$.$ Write the expression for total cost per month. Assume $30$ days per month.

b$.$ Write the expression for total revenue per month.

c$.$

They have $12$ guest rooms available per night. How many rooms need to be

occupied at break$-$even per night? What percentage of rooms would need to be

occupied, on average, to break even? Draw the break$-$even chart.