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Seneca College *

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440

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Accounting

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Nov 24, 2024

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pdf

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2

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10/30/23, 8:22 PM Chapter 4 Quiz https://www.ameengage.com/mod/quiz/review.php?attempt=4638415&cmid=1260498&page=7 1/2 Dashboard / My courses / [Seneca 09/2023] HTM440NHA - Nardi / CHAPTER 4 - Cost-Volume-Profit Analysis / Chapter 4 Quiz Question 8 Correct Mark 1.00 out of 1.00 Brando Hotels incurs total fixed costs of $400,000 and variable cost per room of $20. The selling price is $100 for the only product it produces. If Brando wants to earn a targeted operating income of $100,000, how many rooms must be sold? Select one: a. 8,200 units. b. 5,600 units. c. 6,000 units. d. 6,250 units. Your answer is correct. Explanation: Number of Units to Yield an Operating Income $100,000 = (Fixed Costs + $100,000) / Contribution Margin per room = ($400,000 + $100,000) / ($100-$20 per room) = 6,250 rooms The correct answer is: 6,250 units.
10/30/23, 8:22 PM Chapter 4 Quiz https://www.ameengage.com/mod/quiz/review.php?attempt=4638415&cmid=1260498&page=7 2/2
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