A 99 - room hotel's fixed cost is 1 million per year and the variable cost is 40% ofrevenue. If 75% of the revenue is from the rooms division, what is the breakevenRevPAR? (assume the hotel opens 365 days per year)

Both fixed and variable costs must be taken into account in order to determine the hotel's breakeven…

Answered: A 99 - room hotel's fixed cost is 1…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A 99 - room hotel's fixed cost is 1 million per year and the variable cost is 40% of revenue. If 75% of the revenue is from the rooms division, what is the breakeven RevPAR? (assume the hotel opens 365 days per year)