The 100 room limited service pepper inn has an ADR or 80 and variable costs per room sold of 15. Assume there is no other sales activity. Its monthly fixed costs total is 100,000$.
- How many rooms must be sold to breakeven?
- what day of the month does it break even if it averages a paid occupancy percentage of 60%? Assume all 100 rooms are available for sale each day.
- If variable costs are reduced by $3 and fixed costs increase by $72,000 annually, what are the monthly breakeven revenues?