Answer:
$224,000
Explanation:
Contribution margin = Selling price - Variable cost
= $320 - $76.8
= $243.2
Contribution margin ratio = Contribution margin / Sales
= $243.2 / $320
= $0.76 × 100
= 76%
Break even point = Fixed cost / Contribution margin ratio
= $170,240 / 76%
= $224,000
The statement “Expenses, such as depreciation on buildings
are also known as variable expenses.”, is false, due to the fact that depreciation
is a fixed cost since throughout its useful life as an asset, it reoccurs in
the same amount per period, and thus, depreciation cannot be considered a
variable cost. Nevertheless, as with all things, there is an exception. The
depreciation will be sustained in a pattern that is more consistent with a
variable expense, only if a business recruits a usage-based depreciation methodology.
To add, the corporate expense that alters with the company’s
production output is called the variable cost.
In the rooms because that is where the amenities are located ie the bed comfort, the TV, the view, the room size and then the leaning services and the room service (for food from the restaurants)
I think the correct answer from the choices listed above is option C. <span>The facts that money must withstand the wear and tear that comes from being used over and over again is a measure of its durability. Hope this answers the question. Have a nice day.</span>
