As part of their application for a loan to buy Lakeside Farm, a property they hope to develop as a bed-and-breakfast operation, the prospective owners have projected: Monthly fixed cost (loan payment, taxes, insurance, maintenance) $6000 Variable cost per occupied room per night $ 20 Revenue per occupied room per night $ 75 A. Write the expression for total cost per month. Assume 30 days per month. B. Write the expression for total revenue per month. C. How many rooms do they need to sell per night in order to break even?

As part of their application for a loan to buy Lakeside Farm, a property they hope to develop as a bed-and-breakfast operation, the prospective owners have projected: Monthly fixed cost (loan payment, taxes, insurance, maintenance) $6000 Variable cost per occupied room per night $ 20 Revenue per occupied room per night $ 75 A. Write the expression for total cost per month. Assume 30 days per month. B. Write the expression for total revenue per month. C. How many rooms do they need to sell per night in order to break even?

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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A method of estimating future demand usedfor decision making in order to set reasonable targets and control orlimit uncertainties or risks.