Answer: break even point (y) = 24000
Step-by-step explanation:
This is quite simple to solve,
We will take a step by step calculation.
let us begin;
Given that the Room rent per night is = $90
Also the variable cost per night = $40
Total fixed cost = $1200,000
Now we are asked to solve for the Break even point;
Remember that at break even point, the Revenue = cost
Say the required revenue from renting y rooms R = $90y
The cost of renting y rooms = C = $ (40y + 1200,000)
therefore from this we have the Break even point as
$90y = $ (40y + 1200,000)
where y = 24000
cheers i hope this helps!!!!!!
Answer:
24,000 units
Step-by-step explanation:
Breakeven point = Fixed Costs / sales price by unit - variable cost by unit
BEP = 1,200,000 / 90 - 40
BEP = 1,200,000 / 50
BEP = 24,000 units
Then we get BEP at 24,000 room during the whole year
If the chain consist of 68 motels, then they need to have full occupancy during the whole year
