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    recorder40's Avatar
    recorder40 Posts: 1, Reputation: 1
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    #1

    Jan 25, 2014, 09:00 AM
    Cost-Volume-Profit Question
    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's Avatar
    ma0641 Posts: 15,675, Reputation: 1012
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    #2

    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.

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