The manager of Thyme Hotel determined the following costs for 2020 Room Operating Costs $2,141,000 Depreciation Expense $835,000 Property Taxes Expense $303,000 Management Salaries $480,000 Other Operating Costs $2,123,000 Total Operating Costs $5,882,000 Thyme Hotel has 210 rooms with an average o...

a Determine the number of rooms to be sold during the year To find the number of ...

The manager of Thyme Hotel determined the following costs for 2020. Room Operating Costs $2,141,000 Depreciation Expense

Fantastic news! We've Found the answer you've been seeking!

Question:

The manager of Thyme Hotel determined the following costs for 2020.

Room Operating Costs	$2,141,000
Depreciation Expense	$835,000
Property Taxes Expense	$303,000
Management Salaries	$480,000
Other Operating Costs	$2,123,000
Total Operating Costs	$5,882,000

Thyme Hotel has 210 rooms with an average occupancy rate of 85%. It operates 365 days per year.

a) Determine the number of rooms to be sold during the year.

b) Based on the above information, what is the breakeven room rate for Thyme Hotel?

c) What is the minimum daily revenue?

d) If Thyme Hotel has two different sized rooms, 300 square feet and 400 square feet, what would be the minimum rate to charge for those rooms if there are 110 300-square-foot rooms?
Round square feet to the nearest whole number.
Round room rates to 2 decimal places.