Question: How would you put this into excel? 2. What is the breakeven point? (that is, how many rooms must be occupied for you to breakeven?)
2. What is the breakeven point? (that is, how many rooms must be occupied for you to breakeven?) Define the random variable X. X = # of rooms Express Total Revenue, Fixed Cost, Variable Cost, Total Cost, and Profit in terms of X Calculate Breakeven point. Data what if goal seek set cell: Profit . Total Value: 0 By change cell: # of rooms 25 room rentals = Breakeven point Total Revenue = 50x Total Cost = 1000 + 10x Total Cost Variable = 10x Profit = 50x - (1000 + 10x) CM (x) - FC (50x - 10x) - 1000 40x - 1000 0 = 40x - 1000 (Profit = 0 when breakeven) X = 1000/40 = 25
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