What is the contribuion margin

Reference no: EM13290327

The California hotel is a 100 room limited service hotel with ADR of $80 and variable costs per room of $20. Assume there is no other sales activity. Its monthly fixed cost total $120,000.

-how do you find sales when they are not given in the problem ( for the step above)

-how do you find profit (for the step above)

1) what is the contribuion margin and contribution margin ratio per room sale?

Reference no: EM13290327

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What is the contribuion margin : The California hotel is a 100 room limited service hotel with ADR of $80 and variable costs per room of $20. Assume there is no other sales activity. Its monthly fixed cost total $120,000.. what is the contribuion margin and contribution margin ratio..

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