The Wayside Motel has monthly fixed costs of $6,000, and its average daily rate (ADR) is $50. If its variable costs per room are 40% of ADR, how many rooms must be sold to break even?

6,000

3,000

100

200

The limited service Pepper Inn has an ADR of $80.00, UVC of $15.00, and FC of $100,000. Based on the information given, what are the number of rooms required for Pepper Inn to breakeven?

10,500

8,350

1,538

1,358