A hotel's management has estimated that in the next year there will be 6,300 guest nights at a room rate of £60 per nigh

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

A hotel's management has estimated that in the next year there will be 6,300 guest nights at a room rate of £60 per nigh

Post by answerhappygod »

A hotel's management has estimated that in the next yearthere will be 6,300 guest nights at a room rate of £60 per night.Variable costs are always 25% of sales revenue. Fixed costs for theyear are expected to be £207,900
What is the validity of the followingstatements?
With no change in the number of guest nights, thebreakeven room rate is £45.
A True
B False
With no change in room rate the breakeven number ofguest nights is 4.620:
C True
D False
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Post Reply