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Determine the break even sales revenues

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Question - Your 100 room hotel runs at has an ADR of $110. Typically the variable cost % is 35.5% and the fixed costs are $956,560.

a. Determine the Break Even Sales Revenues (BESR)?

b. Determine the Break Even Units (How many rooms must you sell to break even?)

c. How does your answer in b translate into Occupancy?

d. What would the BESR and the BEU and Occupancy be if I wanted to generate $75,000 in Operating Profit?

e. How much operating profit can I generate if my revenues reached $1,750,000?

Reference no: EM132759966

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