Answer: break even point (y) = 24000
Step-by-step explanation:
This is quite simple to solve,
We will take a step by step calculation.
let us begin;
Given that the Room rent per night is = $90
Also the variable cost per night = $40
Total fixed cost = $1200,000
Now we are asked to solve for the Break even point;
Remember that at break even point, the Revenue = cost
Say the required revenue from renting y rooms R = $90y
The cost of renting y rooms = C = $ (40y + 1200,000)
therefore from this we have the Break even point as
$90y = $ (40y + 1200,000)
where y = 24000
cheers i hope this helps!!!!!!
