As Part of Their Application for a Loan to Buy $\quad\$ 6000$

question 59

Essay

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) $\quad\$ 6000$
Variable cost per occupied room per night $\quad\quad\quad\quad\quad\quad\quad\quad\quad\$ 20$
Revenue per occupied room per night $\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\$ 75$
a.Write the expression for total cost per month. Assume 30 days per month.
b.Write the expression for total revenue per month.
c.If there are 12 guest rooms available, can they break even? What percentage of rooms would need to be occupied, on average, to break even?

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Definitions:

Insulate

To coat or surround with material in order to prevent the passage or leakage of heat, electricity, or sound.

Lipids

A broad class of naturally occurring molecules that include fats, oils, waxes, and certain vitamins, characterized by their insolubility in water.

Peptide

A short chain of amino acids linked by peptide bonds, which can function as signaling molecules or as components of proteins.

Polypeptide Chain

A long, continuous sequence of amino acids linked by peptide bonds, which folds into a functional protein or acts as part of a protein.