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Determine the cruz inn breakeven point in rooms sold

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Reference no: EM132595153

Jane Cruz, the owner of the Cruz Inn, has requested your assistance in analyzing her 100-room property. She provides the following information:

1. The average room sale price is $250.

2. Annual fixed costs equal $275,000.

3. Variable costs per room sold equal $40.

4. Tax rate = 30%

Required:

Question A. Determine the Cruz Inn breakeven point in rooms sold.

Question B. Determine the Cruz Inn breakeven point in revenues.

Question C. If Jane desires her property to generate an after tax profit of $250,000, how many rooms must be sold?

Reference no: EM132595153

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