Description of this paper

Annual fixed costs of $3.2 million for its 400-room motel,

Description

solution


Question

P2-35, Motel Rentals;Suppose a particular Motel 6 has annual fixed costs of $3.2 million for its 400-room motel, average daily room rents of $50, and average variable costs of $10 for each room rented.? ? It operates 365 days per year.;- How much net income on rooms will Motel 6 generate;(a) if the motel is completely full throughout the entire year and;(b) if the motel is half full?;- Compute the break-even point in number of rooms rented.? ? 

 

Paper#26715 | Written in 18-Jul-2015

Price : $27
SiteLock