Question

Jason rents rooms in his hotel for an average of $100 per night. the variable cost per rented room is $20. his fixed costs are $100,000 and his target profit is $20,000. for jason to earn his target profit, he will need to rent out ________ rooms.

Answer 1

sales volume=(fixed cost+target profit)/benefaction per unit =(100,000+20,000)/(100-20) =(120,000/80) =1500