1. The 100-room limited-service Pepper Inn has an ADR of $75 and variable costs per room sold of $15. Assume there is no other sales activity. Its monthly fixed costs total $120,000.
   1. How many rooms must be sold to break even? (please round up the number). (1 points)
   2. What day of the month does it break even if it averages a paid occupancy percentage of 85%? Assume all rooms are available for sale each day. (2 points)

If variable costs are reduced by $3 and fixed costs increase by $120,000 annually (for questions c & d),

3. How many rooms must be sold to break even? (please round up the number). (1 points)
4. What day of the month does it break even if it averages a paid occupancy percentage of 85%? Assume all rooms are available for sale each day. (2 points)