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How many more rooms must be sold in order for management

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Question 1: The Roof Top Bistro achieved an average daily room rate (ADR) and a unit variable cost (UVC) of $95.00 and $35.00, respectively, in this month. Imagine that the building rent is about to expire and the new rent will cause fixed cost (FC) to increase by $37,000 for the next month. Based on this situation, how many more rooms must be sold in order for the management of the Roof Top to cover the increased FC and to still be at breakeven?

Reference no: EM132536373

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