Your uncle owns a motel of 80 rooms in town. having known your expertise in problem solving, he shares his date on revenue and expenses and ask you to help him. His monthly expenses on untilities, mortgage, repair and maintenance, employee wages, and other fixed costs add to $40,000 per month. His variable cost of reanting a room for a night includes soap, shampoo, breakfast, ect. is $12. He rents a room for a night for $69.
A. How many rooms will he need to rent per night just to break-even?
B. How many room will he need to rent per night if he want to make a prfit of $10,000 per month?
C. What will be his profit or loss if he is able to rent only 20 rooms per night? Or 40 rooms per night?