As your final task as a sales and marketing intern, you have been asked to evaluate a further promotional plan for 1 month-this time to boost occupancy rates at the Crystal Hotel. This will include a promotional accommodation rate offer. The standard room rate("rack rate") = $250 per night. The hotel has 100 rooms. Monthly occupancy rates = 30%(without promotion)

REQUIRED

Consider a promotional room rate = $170 per night for 1 month. Assume variable cost per room = $50 per night. Fixed costs = $20,000 for 1 month. Conduct the following Break-even analysis:

1. The contribution marginfor one night'saccommodation per room at the promotional room rate
2. The contribution margin ratio at the promotional room rate.
3. The monthly break-even point in number of rooms and revenue to be collected.
4. The number of rooms to be occupied at the promotional room rate to generate net profit before tax = $225,000 for 1 month.
5. Comment on CVP analysis based on your calculations.