Suppose Sunnyside Hotel Has Annual Fixed Costs Applicable to Its

question 8

Multiple Choice

Suppose Sunnyside 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 is the break-even point in number of rooms rented?

• A) 20,000
• B) 30,000
• C) 100,000
• D) 120,000

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Definitions:

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