Answer:
in roms 425
in dollars 24,650
Explanation:
Operating fixed cost
salaries 5,500
utilities 1,200
depreciation 1,300
maintenance 4,325
Total Fixed cost 12,325
Contribution per room:
$58 per night
-$10 maid
-$19 other
Contribution = 29
[tex]\frac{Fixed\:Cost}{Contribution \:Margin} = Break\: Even\: Point_{units}[/tex]
12,325/29 = 425 rooms
[tex]\frac{Fixed\:Cost}{Contribution \:Margin \:Ratio} = Break\: Even\: Point_{dollars}[/tex]
[tex]\frac{Contribution \: Margin}{Sales \: Revenue} = Contribution \: Margin \: Ratio[/tex]
29/58 = 0.5
12,325/0.5 = 24,650
Also can be done:
BEPunits x Price per unit
425 x 58 = 24,650