You own a 10 bedroom Bed and Breakfast With the following, $ 12,000 per month mortgage payment
Question:
You own a 10 bedroom Bed and Breakfast With the following, $ 12,000 per month mortgage payment $ 4,000 per month for the gardener and housekeeper $ 9.00 per room for soap, towels, etc. $ 20.00 per room desired Net Profit Assume a 30 day month
SOLVE FOR THE FOLLOWING:
a. The selling price per room per night AND the monthly breakeven point.
b. The monthly breakeven point if you raise the selling price calculated in A above by $12.00.
c. The monthly breakeven point is if you lower the selling price calculated in A above by $3.00.
d. Which of the 3 prices would you charge? What factors should you consider?
e. What would your selling price and breakeven point be if you want to pay yourself $50,000 per year?
Essentials of Statistics for Business and Economics
ISBN: 978-1305081598
7th edition
Authors: David Anderson, Thomas Williams, Dennis Sweeney, Jeffrey Cam