Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question The following information is for a small all-inclusive hotel (Lavern Limited) for 2019. Rate per person per night US$150.00 Variable cost per person

image text in transcribed

Question The following information is for a small all-inclusive hotel (Lavern Limited) for 2019. Rate per person per night US$150.00 Variable cost per person per night occupied US$ 82.50 Fixed costs Occupancy Required: US$270,000 8,000 nights a. Calculate the break-even in units (nights). b. Prepare a break-even chart. c. d. It is expected that the global pandemic in 2020 will result in a reduction in occupancy, by how much can occupancy decline in units (nights) in 2020 without the hotel incurring a loss? How much units (nights) must be sold in order to earn a desired profit of US$337,500 before taxation? Recalculate the break-even point in units (nights) assuming that each of the following happens independently: 1. Variable costs per person per night occupied decreases by US$7.50. 2. Advertising expenditure increases by US$13,500.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Jeffrey Waybright, Liang Hsuan Chen, Rhonda Pyper

1st Canadian Edition

9780132147538, 132889714, 013214753X , 978-0132889711

More Books

Students also viewed these Accounting questions

Question

Explain, in your own words, what is meant by source inspection.

Answered: 1 week ago