Imagine that you are investing 3 million in a hotel in Colorado. The available data for conducting the breakeven analysis for the hotel is as follows: - 600 rooms - $50 per night - The fixed costs are $1,200,000 per year - The variable costs are 30% of the total revenue - 60% of the total revenue is from the hotel's rooms department and 40% are generated from all the other operating departments (telephone, food, drinks, internet, selling point, etc.)

Please calculate:

• No. of rooms per day for break-even
• Required occupancy for break-even
• Breakeven point in sales (per year)
• Is this investment potentially profitable given your breakeven analysis result interpretation? If so, what is the amount of profits per year?

Answer rating: 100% (QA)

To calculate the breakeven analysis for the hotel investment in Colorado we need to determine the nu... View the full answer