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The below are the financial information of the Hotel before and after the construction of the new Wing which helps increase the capacity. What is
The below are the financial information of the Hotel before and after the construction of the new Wing which helps increase the capacity. What is the proportional change of the breakeven occupancy rate (i.e. as a percentage of previous breakeven)?
Average room rate Number of rooms Average Occupancy Rate Actual before Expected after the new wing the new wing $220 $240 250 400 75% 70% Cost of Sales Variable (per room) Fixed (per day) $20 $15,000 $25 $25,000 Selling, General and Administrative Expenses Variable (per room) $50 Fixed (per day) $10,000 $50 $12,000Step by Step Solution
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