Suppose a Holiday Inn Hotel Has Annual Fixed Costs Applicable

question 125

Multiple Choice

Suppose a Holiday Inn Hotel has annual fixed costs applicable to its rooms of $1.2 million for its 300-room hotel, average daily room rents of $50, and average variable costs of $10 for each room rented.It operates 365 days per year.The break-even point in number of rooms rented is _____.

• A)30,000 rooms
• B)24,000 rooms
• C)120,000 rooms
• D)none of these answers is correct

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Definitions:

Strike

A work stoppage caused by the mass refusal of employees to work, usually to protest against employment conditions.

Lockout

An action taken by employers to pressurize the employees or union members by shutting down the workplace, typically used during a labor dispute.

Picketing

A form of protest in which individuals congregate outside a business or workplace to express grievances or demand changes.

Rights Dispute

A disagreement or conflict arising over the entitlement, power, or freedom claimed by one or more parties.