Suppose Shady Lane Hotel Has Annual Fixed Costs Applicable to Its

question 54

Multiple Choice

Suppose Shady Lane Hotel has annual fixed costs applicable to its rooms of $1.0 million for its 300-room hotel.Average daily room rents are $60 per room and average variable costs are $10 for each room rented.It operates 365 days per year.What percent of occupancy is needed to breakeven?

• A) 3.65%
• B) 18.3%
• C) 27.4%
• D) 34.3%

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Definitions:

Placebo Effect

A psychological phenomenon where a fake treatment improves a person's condition simply because they believe the treatment will work.

Operational Definition

A carefully worded statement of the exact procedures (operations) used in a research study. For example, human intelligence may be operationally defined as what an intelligence test measures.

Room Lighting

The use of light sources to illuminate an indoor area, which can impact mood, productivity, and visual comfort.

Test Performance

Refers to the outcome or results obtained from administering a test which measures knowledge, skills, or abilities.