Answer:
The crossover point for Time [tex]h = 6545 \ room \ nights[/tex]
Step-by-step explanation:
From the question we are told that
The total rooms rented for the year is [tex]z = 50 * 365 = 18250 \ rooms[/tex]
Time's fixed cost is r = $61,000
Time's variable cost is [tex]y =[/tex]$12.5 per room
Duffy's Maid Service fixed cost is [tex]x =[/tex]$25,000
Duffy's Maid Service variable cost is [tex]k =[/tex] $18.00 per room
The cross over point for Time is mathematically represented as
[tex]h = \frac{r - x}{k- y}[/tex]
substituting values
[tex]h = \frac{61000 - 25000}{ 18 - 12.5}[/tex]
[tex]h = 6545 \ room \ nights[/tex]