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Monthly breakeven revenues

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The 100-room limited-service Residence Inn has an ADR of $80 and variable costs per room sold of $15. Assume there is no other sales activity. Its monthly fixed costs total $100,000.

a. How many rooms must be sold to break even per month?

b. If variable costs are reduced by $3 and fixed costs increase by $72,000 annually, what are the monthly breakeven revenues?

Reference no: EM131025568

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