How many rooms must be sold to break even per month


Response to the following problem:

1. The 100-room limited-service Residence Inn has an ADR of $80 and variable costs per room sold of $15. Assume there is no other sales activity. Its monthly fixed costs total $100,000.

a. How many rooms must be sold to break even per month?

 

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Financial Accounting: How many rooms must be sold to break even per month
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