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Use below information for Questions 7 to 1 0 : Jane Botosan operates a bed and breakfast hotel in a resort area near Lake Michigan.
Use below information for Questions to : Jane Botosan operates a bed and breakfast hotel in a resort area near Lake
Michigan. Depreciation on the hotel is $ per year. Jane employs a maintenance person at an annual salary of
$ and a cleaning person at an annual salary of $ Real estate taxes are $ per year. The rooms rent at
$ per person per night including breakfast. Laundry and cleaning services cost $ per person per night and the
food is $ per person per night.
Q Determine the BEP in sales.
Q Determine TNI in sales for $
Q Jane is considering changing the business strategy. She considers installing additional cleaning machines which will
decrease laundry and cleaning service per person per night by $ However, fixed depreciation cast will increase by
$ Determine BEP in sales if the changes are made. Do NOT round the rental number to integer.
Q Determine BEP in units at which Jane would be indifferent between the current and proposed business models.
Do NOT round the rental number to integer.
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