Q1. The monthly fixed costs of operating a 20 room motel are $28,000. The price per room per night ( or per unit) is set at $110. The variable cost per day, per room ( or per unit) is $12 for maid service, $6 for toiletry supplies and laundry, and $6 for heat and utilities. a. Find the break-even quantity ( or Q) for a month for the motel.(Hint: Round off the Q) b.The owner is planning to reduce his price to $ 100 per room per night; what is his profit for the month assuming all rooms are occupied? ( Hint: One month has 30 days)

Q1. The monthly fixed costs of operating a 20 room motel are $28,000. The price per room per night ( or per unit) is set at $110. The variable cost per day, per room ( or per unit) is $12 for maid service, $6 for toiletry supplies and laundry, and $6 for heat and utilities. a. Find the break-even quantity ( or Q) for a month for the motel.(Hint: Round off the Q) b.The owner is planning to reduce his price to $ 100 per room per night; what is his profit for the month assuming all rooms are occupied? ( Hint: One month has 30 days)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 5EB: Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90....

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