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Quantitative Methods Case

A newly opened bed-and-breakfast projects the following:

Monthly fixed costs $6000
Variable cost per occupied room per night $20
Revenue per occupied room per night $75

If there are 12 rooms available, what percentage of rooms would have to be occupied, on average, to break even?

Solution Preview

Contribution per room per night = Revenue - variable cost = $75-$20 ...

Solution Summary

If there are 12 rooms available, what percentage of rooms would have to be occupied, on average, to break even?

$2.19