The 100-room limited-service MCU Inn has an ADR of S80 and variable costs per room sold...

 

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The 100-room limited-service MCU Inn has an ADR of S80 and variable costs per room sold of $15. its Monthly Fixed costs total $100,000. 1 How many rooms must be sold to breakeven? 2 What day of the month does it break even if it averages a paid occupancy percentage of 60%? 3 If variable costs are reduced by $3 and fixed costs increase by $72,000 annually, what are the monthly breakeven revenues? ANSWER 1 Fixed costs = 100,000 ADR = 80 Variable costs per room = 15 Rooms sold to breakeven = (formula) Round up to be an integer = (number) 2 Occupancy percentage = 60% Number of rooms = 100 Rooms sold per day- (formula) Breakeven day of the month = (formula) Round up to be an integer = (number) 3 Annual fixed costs increase = 72,000 Monthly fixed costs increase = (formula) New monthly fixed costs = (formula) New variable costs = (formula) Rooms sold to breakeven = (formula) (number) Round up to be an integer = Monthly breakeven revenue = (formula) The 100-room limited-service MCU Inn has an ADR of S80 and variable costs per room sold of $15. its Monthly Fixed costs total $100,000. 1 How many rooms must be sold to breakeven? 2 What day of the month does it break even if it averages a paid occupancy percentage of 60%? 3 If variable costs are reduced by $3 and fixed costs increase by $72,000 annually, what are the monthly breakeven revenues? ANSWER 1 Fixed costs = 100,000 ADR = 80 Variable costs per room = 15 Rooms sold to breakeven = (formula) Round up to be an integer = (number) 2 Occupancy percentage = 60% Number of rooms = 100 Rooms sold per day- (formula) Breakeven day of the month = (formula) Round up to be an integer = (number) 3 Annual fixed costs increase = 72,000 Monthly fixed costs increase = (formula) New monthly fixed costs = (formula) New variable costs = (formula) Rooms sold to breakeven = (formula) (number) Round up to be an integer = Monthly breakeven revenue = (formula)

Answer rating: 100% (QA)

Solution Part 1 Number of rooms that must be sold to breakeven 1539 Part 2 Day on which breakeven oc... View the full answer