COMFY INNS is a chain operating in small cities throughout the Mideast. Its most relevant measure of volume is the occupancy rate, the percentage of available rooms rented to guests. Monthly revenue is $ $100,000$ per percentage point of occupancy. $($For example, at $40\%$ occupancy. revenue is $ $4,000,000.)$ Contribution margin is $70\%,$ and monthly fixed costs are $ $4,200,000.$

REQUIRED: $($Show computations$)$

a$.$ Find the monthly break$-$even point in dollars and in occupancy rate.

b$.$ Determine the profit at $75\%$ occupancy rate.

c$.$ Determine the occupancy rate needed to earn $ $700,000$ per month.

d$.$ Determine whether the entity should increase advertising $ $100,000$ per month, if doing so increases the occupancy rate by two percentage points.