The following information is for Winter Break Hotel. Given the information, questions from #14 to #16. o Average room selling price: $65 o Average variable cost per room: $17 o Annual total fixed costs: $450,000 o Sales goal (= Net Income) of the hotel this year: $5,000,000 o Number of rooms available per day: 400 rooms o This hotel is open 365 days a year.

What is the occupancy percentage required to reach the sales goal? (Round to the second decimal place.)

A. 23.43%

B. 9.46%

C. 23.65%

D. 77.77%

For every $1 of sales, how much can this hotel use to pay on fixed costs or to generate profits?

A. $2.82

B. $.82

C. $.26

D. $.74

If this hotel experiences an increase in its fixed cost by $35,000 this year, how many additional rooms must be sold to absorb this increase? (Round up to the nearest whole number.)

A. 730 rooms

B. 21,722 rooms

C. 727 rooms

D. 11,667 rooms