The Meyer Model (MM), a rooms-only fifty-room lodging operation has a cost structure as follows:

Monthly fixed Cost $20,000

Variable Costs/room sold = $20

ADR = $60

Average tax rate equal 20%

Required

1) What is MM's CMR

2) What is MM's breakeven point? (in rooms sold)

3) If MM is to make $10,000 of monthly profit (after tax) what must its hotel revneue be?

4) if MM makes 10,000 of monthly profit during June what day of the month does it break even? Assume the number of rooms sold are the same each day

5) If MM's variable cost increased by 50%, how much must its ADR increase all other things beingn the same?