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The Downtowner Motel desires to earn after-tax income of $10,000 per month. Its average daily rate (ADR) is $60, and its variable costs per room
The Downtowner Motel desires to earn after-tax income of $10,000 per month. Its average daily rate (ADR) is $60, and its variable costs per room sold equal $20. Its monthly fixed costs total $15,000, and its average tax rate is 20%. How many rooms must be sold over the course of the year in order to achieve the desired profit level?
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