5 A 90 room motel has an average room rate of $65.60. The fixed costs are...

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5 A 90 room motel has an average room rate of $65.60. The fixed costs are $300,000 a year, and its variab costs total $476,000 at an average occupancy of 70%. 5.1 What is the motel's breakeven occupancy% 5.2 What level of sales revenue is required to provide an operating income before taxed of $100,000 a year? 5.3 If the average room rate is increased by $8, and operating income of $100,000 a year is wanted, h many fewer rooms per night would need to be sold than was the case in above? 5.4 Wage rates for housekeepers are to be increased by $4 an hour. It takes a housekeeper half an hour clean a room. Other cost increases will cause an increase of $1.00 in the variable costs per room occupied. Fixed wages and other fixed cost are expected to increase $4,000 per month. To compensate for the increase in room rate to $73.60, $30,000 more per year is to be spent on advertising. Operating income before tax is to increase 20% over the present $100,000 per year. W level of sales revenue is required? What is the sales revenue in terms of occupancy%? 5 A 90 room motel has an average room rate of $65.60. The fixed costs are $300,000 a year, and its variab costs total $476,000 at an average occupancy of 70%. 5.1 What is the motel's breakeven occupancy% 5.2 What level of sales revenue is required to provide an operating income before taxed of $100,000 a year? 5.3 If the average room rate is increased by $8, and operating income of $100,000 a year is wanted, h many fewer rooms per night would need to be sold than was the case in above? 5.4 Wage rates for housekeepers are to be increased by $4 an hour. It takes a housekeeper half an hour clean a room. Other cost increases will cause an increase of $1.00 in the variable costs per room occupied. Fixed wages and other fixed cost are expected to increase $4,000 per month. To compensate for the increase in room rate to $73.60, $30,000 more per year is to be spent on advertising. Operating income before tax is to increase 20% over the present $100,000 per year. W level of sales revenue is required? What is the sales revenue in terms of occupancy%?

Answer rating: 100% (QA)

51 To find the breakeven occupancy percentage we can use the formula Breakeven Occupancy Fixed Costs ... View the full answer