PDA

View Full Version : Cost-Volume-Profit Question


recorder40
Jan 25, 2014, 09:00 AM
Super 8 has annuial fixed costs of $900,000 for its 100 room motel, average daily room rents of $54, and average variable costs of $9 for each room rented. It operates 365 days per year.

1. How much net income on roomw eill super 8 generate (a) if the motel is completely full throughout the entire year and (b) if the motel is half full?

2 Compute the break-even point in number of rooms rented. What percentage occupancy for the year is needed to break even.

ma0641
Jan 25, 2014, 02:27 PM
Basic math, you can do that. Rooms X (rent+ variable costs) etc. etc. Give us some of your work, we don't do your homework.