What is the occupancy percentage for the Rhoades Inn

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Question - John Rhoades owner of Rhoades Inn, has requested your assistance in analyzing his fifty room rooms-only property. He provides you information as follows:

The average room sales price is $30.

Monthly fixed costs equal $20,000

His variable costs per room sold equal $10.

-Determine the Rhoades Inn's breakeven point in revenue 

-If revenues equal $450,000 what is the Rhoades Inn's margin of safety in revenues and rooms sold?

-If John desires his property to generate a pretax profit of $100,000, how many rooms must be sold?

-What is the occupancy percentage for the Rhoades Inn when pretax profit earned is $100,000?

Reference no: EM133032156

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