The monthly fixed costs of operating a 20 room motel are $28,750. The price per room per night ( or per unit) is set at $105. The variable cost per day, per room ( or per unit) is $13 for maid service, $6 for toiletry supplies and laundry, and $5 for heat and utilities.

1.) Find the break-even quantity ( or Q) for a month for the motel.(Hint: Round up the Q)

2.) The owner is planning to reduce his price to $100 per room per night; what is his profit for the month assuming all rooms are occupied? ( Hint: One month has 30 days; use this to find Q and CPT PFT)