Fixed costs-revent revenue and variable costs

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Reference no: EM131452051

You are tasked to identify the break-even point for property A and Property B. Use Q=fixed costs/Revent Revenue-Variable costs. So Q will equal the number of nights that must be be rented to break-even with the costs associated with owing the respective properties.

Virginia avenue has a fixed cost (FC) of 160 dollars; Variable Costs of 7% of FC; and Rent Revenue of 12 dollars

Mediterrean avenue has FC of 60 dollars; Variable Costs of 1.5% of FC and Rent Revenue od 2 dollars

St. James Place has FC of 180 dollars; Variable Costs of 5.9% of FC and Rent Revenue of 14 dollars

Boardwalk has FC of 400 dollars; Variable Costs of 11% of FC; and Rent Revenue of 50 dollars

Compare at least two properties and provide your recommendations regarding the best real estate option. Rent is your revenue per unit (night of stay) You may discuss the added costs of improvements. Ensure you illustrate your calculations.

Reference no: EM131452051

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