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YYZ Hotel has a total 200 rooms. Its sales mix and contribution information per room is given below: Sales Mix Contribution margin Standard 35% $50

YYZ Hotel has a total 200 rooms. Its sales mix and contribution information per room is given below:

Sales Mix Contribution margin
Standard 35% $50
Deluxe 50% $70
Suite 15% $100

The total fixed cost for the month of November is $283,500

Questions:

  1. Weighted average contribution margin per room
  2. What is the breakeven occupancy?
  3. Number of standard rooms to be sold to breakeven
  4. Number of deluxe rooms to be sold to breakeven
  5. Number of suite to be sold to breakeven
  6. What would be the room profit if occupancy is 90% for November?

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