What is the breakeven point in number of rooms rented

Assignment Help Financial Accounting

Reference no: EM132848897

Questions -

Q1. Assume that RAS AMBA Hotel has annual f ked costs applicable to its operatio n of Birr 1 82,500 for its 60-rooms motel; daily room rent income of Birr 150; and variable costs of Birr 50 for each room rented. It operates 365 days a year.

Required -

Operating income on rooms will be generated, if the motel is fully occupied th roughout an entire year?

How much operating income on rooms will be generated if the motel is half fu Il during a year?

What is the breakeven point in number of rooms rented assuming that the mot el is fully occupied throughout the year?

Q2. The Selected data concerning the past fiscal year's operations of the Eyoha Manufacturing Company are presented below:

Inventories Beginning Ending

Direct materials Br.75, 000 Br.85, 000

Work in process 80,000 30,000

Finished goods 90,000 110,000

Other data follows:

Direct materials used... Br.326, 000

Total manufacturing costs charged to production 686,000*

* Include direct materials, direct labor, and factory overhead (60% of Direct Labor cost)

Required -

1. Compute the cost of direct materials purchased during the year and direct lab or costs charged to production during the year?

2. The costs of goods manufactured during the year?

Reference no: EM132848897

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