Question $7$

Carol Botosan operates a bed and breakfast hotel in a resort area near Lake Michigan. Depreciation on the hotel is $$76,272$ per year. Carol employs a maintenance person at an annual salary of

$$57,000$ and a cleaning person at an annual salary of $$40,000.$ Real estate taxes are $$26,000$ per year. The rooms rent at an average price of $$76\mathrm{.}00$ per person per night including breakfast.

Other costs are laundry and cleaning service at a cost of $$26\mathrm{.}12$ per person per night and the cost of food, which is $$21\mathrm{.}00$ per person per night.

$($a$)$

Determine the quantity of rentals and the sales revenue Carol needs to break even using the contribution margin technique.

Break$-$even quantity of rentals

Break$-$even sales

$

$($b$)$

The parts of this question must be completed in order. This part will be available when you complete the part above.

$($c$)$

The parts of this question must be completed in order. This part will be available when you complete the part above.