A 99 - room hotel's fixed cost is 1 million per year and the variable cost is 40% of revenue. If 75% of the revenue is from the rooms division, what is the breakeven RevPAR? (assume the hotel opens 365 days per year)
A 99 - room hotel's fixed cost is 1 million per year and the variable cost is 40% of revenue. If 75% of the revenue is from the rooms division, what is the breakeven RevPAR? (assume the hotel opens 365 days per year)
Chapter4A: Nopat Breakeven: Revenues Needed To Cover Total Operating Costs
Section: Chapter Questions
Problem 1EP
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![A 99 - room hotel's fixed cost is 1 million per year and the variable cost is 40% of
revenue. If 75% of the revenue is from the rooms division, what is the breakeven
RevPAR? (assume the hotel opens 365 days per year)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3ed962cd-8a95-4044-85c2-5d730734d86d%2F94409abc-c105-461f-83cf-51d1c5493589%2Fvcknfn_processed.png&w=3840&q=75)
Transcribed Image Text:A 99 - room hotel's fixed cost is 1 million per year and the variable cost is 40% of
revenue. If 75% of the revenue is from the rooms division, what is the breakeven
RevPAR? (assume the hotel opens 365 days per year)
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