WS Hotel had prepared information related to its business operation in the month of August 2020 for the purpose of breakeven analysis. The breakeven analysis result will then use as a benchmark to improve its operation for September 2020. The fixed costs incurred by the hotel are $30,000 per month. The variable cost of one room is $55, and the rooms are sold for $150 each. The company sold 750 rooms in August 2020.

Required:

(a) Calculate the break-even point both in units and sales revenue.

(b) Calculate the break-even point (in units and sales revenue) if the hotel decided to increase the fixed costs by 5%.

(c) Calculate the net income or loss for the hotel for August 2020, if:

(i) The fixed costs maintained at $30,000.

(ii) The fixed costs increased by 5% as in (b) above.

(d) The sales manager wishes to achieve a target profit of $25,000 in September 2020. Calculate the number of rooms to be sold by the hotel in order to achieve the target.