Jenny Guest house is a company that takes care of travelers along its area of operation....

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Jenny Guest house is a company that takes care of travelers along its area of operation. The budget for the guest house for the year 2020 are as Follows Occupation Charges Cost: Variable GHS GHS 900,000 Direct salaries 339,000 Direct supplies 100,000 Occupation Service: Overheads 90,000 Fixed: Administration Overheads Administration Loss 100,000 120,000 155,000 904,000 -4000 Additional Information: 1. Number of rooms available 2. Occupants Days 100 per day 20,000 per annum You are required to compute: a. The contribution margin ratio b. The Break-even point in both occupants' days and occupants' charges c. The margin of safety percentage if the guest house operates at full capacity. d. The Break-even point in occupant days if direct salaries were increased to GHS 350,000 and by GHS 5,000 e. The Break-even point in occupant days if Fixed occupants service overheads were increase to GHS 120,000. Jenny Guest house is a company that takes care of travelers along its area of operation. The budget for the guest house for the year 2020 are as Follows Occupation Charges Cost: Variable GHS GHS 900,000 Direct salaries 339,000 Direct supplies 100,000 Occupation Service: Overheads 90,000 Fixed: Administration Overheads Administration Loss 100,000 120,000 155,000 904,000 -4000 Additional Information: 1. Number of rooms available 2. Occupants Days 100 per day 20,000 per annum You are required to compute: a. The contribution margin ratio b. The Break-even point in both occupants' days and occupants' charges c. The margin of safety percentage if the guest house operates at full capacity. d. The Break-even point in occupant days if direct salaries were increased to GHS 350,000 and by GHS 5,000 e. The Break-even point in occupant days if Fixed occupants service overheads were increase to GHS 120,000.

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a To compute the contribution margin ratio we use the formula Contribution Margin Ratio Occupation C... View the full answer