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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
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.
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