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The Jose Motel desires to earn after-tax income of $150,000 in 2021. Its average daily rate (ADR) is $70, and its variable costs per room

The Jose Motel desires to earn after-tax income of $150,000 in 2021. Its average daily rate (ADR) is $70, and its variable costs per room sold equal $40. Its annual fixed costs total $160,000, and its average tax rate is 25%. How many rooms must be sold in order to achieve the desired profit level?

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9,250 rooms

12,000 rooms

8,000 rooms

6,560 rooms

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