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Supersaver Hotel is the world's largest budget hotel chain founded in 1972. Now, it has more than 92,000 rooms in more than 2,000 locations (average
Supersaver Hotel is the world's largest budget hotel chain founded in 1972. Now, it has more than 92,000 rooms in more than 2,000 locations (average is 47 rooms) in the U.S. and Canada. Suppose a particular Supersaver Hotel has annual fixed cost of $1, 300,000 for its 115 room hotel with an average daily room rents of $50, variable cost of $10/each rented. How much net income on rooms will the hotel generate throughout the year and if the hotel is half full, Compute the BEP in number of room rented and what the % occupancy for the year is needed to break even
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