The hotel has 400 rooms. You estimated that the fixed cost for the month of August is $300,000 and breakeven rooms is 3200. You also estimated that the variable cost for the month is $450,000. Your ADR for the month is $240. What is the Breakeven Occupancy Percentage for the month of August? (Choose the closest answer)Question 27 options:73%80%27%20%
Added by Valerie J.
Step 1
Total revenue = ADR * Number of rooms Total revenue = $240 * 400 Total revenue = $96,000 Show more…
Show all steps
Your feedback will help us improve your experience
Suman Saurav Thakur and 55 other Principles of Accounting educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Recommended Videos
28. Rental income. A 300-room hotel in Las Vegas is filled to capacity every night at $80 a room. For each $1 increase in rent, 3 fewer rooms are rented. If each rented room costs $10 to service per day, how much should the management charge for each room to maximize gross profit? What is the maximum gross profit?
Suman Saurav T.
The weekly price at an extended-stay hotel (renting by the week for business travelers) is $950. Operating costs average $20,000 per week, regardless of the number of rooms rented. Construct a spreadsheet model to determine the profit if 40 rooms are rented. The manager has observed that the number of rooms rented during any given week varies between 32 and 50 (the total number of rooms available). 1.) Use data tables to evaluate the profit for this range of unit rentals. 2.) How will profit be affected by simultaneous changes in room availability and price?
Adi S.
An apartment complex has 100 two-bedroom units. The monthly profit (in dollars) realized from renting out x apartment units is given by the following function. P(x) = -10x^2 + 1,780x - 40,000 To maximize the monthly rental profit, how many units should be rented out? units What is the maximum monthly profit (in dollars) realizable? $
Recommended Textbooks
Horngren’s Cost Accounting
Cost Accounting A Managerial Emphasis
Principles of Accounting Volume 1: Financial Accounting
Transcript
Watch the video solution with this free unlock.
EMAIL
PASSWORD