Question

A Best Eastern Motel is a regional motel chain. Its rooms rent for $90 per night, on average. The variable cost is $40 a room per night. Fixed costs are $1,200,000 per year. What is the breakeven point?

Answer 1

Answer:

24,000

Step-by-step explanation:

Rent = $90

Variable Cost = $40

Thus profit per room for a night = $50

For breakeven point - 1200000 / 50

= 24,000