A 99 - room hotel's fixed cost is 1 million per year and the variable cost is 40% ofrevenue. If 75% of the revenue is from the rooms division, what is the breakevenRevPAR? (assume the hotel opens 365 days per year)

Both fixed and variable costs must be taken into account in order to determine the hotel's breakeven…

Answered: A 99 - room hotel's fixed cost is 1…

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

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)