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The 40-room limited-service Residence Inn has an ADR of $80 and variable costs per room sold of $60. Assume there is no other sales activity.
The 40-room limited-service Residence Inn has an ADR of $80 and variable costs per room sold of $60. Assume there is no other sales activity. Its annual fixed costs total $180,000.
- Determine the number of room sales required for the Inn to break even (the Inns breakeven point).
- Determine the Inns break point in REVENUE.
- Determine the Occupancy Percentage at the breakeven point.
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Cost Management A Strategic Emphasis
Authors: Edward Blocher, Kung Chen, Thomas Lin
1st Edition
0070059160, 978-0070059160
