Your answer is incorrect.

Patricia is considering upgrading the breakfast service to attract more business and increase prices. This will cost an additional $$5$

for food costs per person per night. She feels she can increase the room rate to $$74\mathrm{.}00$ per person per night. Determine the

quantity of rentals and the sales revenue Patricia needs to break even if the changes are made. $($Round answers to $0$ decimal

places, e$.$g$.5,275.)$

Break$-$even number of rentals

Break$-$even sales

$

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Patricia Botosan operates a bed and breakfast hotel in a resort area near Lake Michigan. Depreciation on the hotel is $$62,313$ per

year. Patricia employs a maintenance person at an annual salary of $$43,000$ and a cleaning person at an annual salary of $$26,000.$ Real

estate taxes are $$12,000$ per year. The rooms rent at an average price of $$62\mathrm{.}00$ per person per night including breakfast. Other costs

are laundry and cleaning service at a cost of $$12\mathrm{.}22$ per person per night and the cost of food, which is $$7\mathrm{.}00$ per person per night.

Your answer is incorrect.

Determine the quantity of rentals and the sales revenue Patricia needs to break even using the contribution margin technique.

Break$-$even quantity of rentals

Break$-$even sales

$

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Your answer is correct.

If the current level of rentals is $4,400,$ by what percentage can rentals decrease before Patricia has to worry about having a net

loss? $($Round percentages to $0$ decimal places, e$.$g$.52\%.)$