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Determine the number of rentals and the sales revenue

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Reference no: EM132520826

Question 1: Determine the number of rentals and the sales revenue Veronica needs to break even using the contribution margin technique.

Question 2: If the current level of rentals is 3,000, by what percentage can rentals decrease before Veronica has to worry about having a net loss (Margin of Safety Rate)?

Question 3: Veronica is considering upgrading the breakfast service to attract more business and increase prices. This will cost an additional $3.00 for food costs per person per night. Veronica feels she can increase the room rate to $65 per person per night. Determine the number of rentals and the sales revenue Veronica needs to break even if the changes are made

Reference no: EM132520826

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