How many rooms sold in order to achieve desired profit level, Business Management

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How many rooms sold in order to achieve desired profit level

Problem

The Jose Motel desires to earn after-tax income of $150,000 in 2021. Its average daily rate (ADR) is $70, and its variable costs per room sold equal $40. Its annual fixed costs total $160,000, and its average tax rate is 25%. How many rooms must be sold in order to achieve the desired profit level?

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