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A hotel has 300 rooms and an annual fixed cost of BRL 1,500,000.00 and variable costs of BRL 90.00 per occupied room, that is, per day-room. The hotel is open 365 days a year and is subject to a 34% income tax. For it to be at the economic break-even point, what should be the daily price P for an occupancy rate of 40% for the hotel to give an annual return of 10% on the investment made by the partners in its construction. The amount invested was BRL 10,000,000.00. a) $182.17 b) $165.69 c) $158.84 d) $134.41

A hotel has 300 rooms and an annual fixed cost of BRL 1,500,000.00 and variable costs of BRL 90.00 per occupied room, that is, per day-room. The hotel is open 365 days a year and is subject to a 34% income tax. For it to be at the economic break-even point, what should be the daily price P for an occupancy rate of 40% for the hotel to give an annual return of 10% on the investment made by the partners in its construction. The amount invested was BRL 10,000,000.00. a) $182.17 b) $165.69 c) $158.84 d) $134.41

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A hotel has 300 rooms and an annual fixed cost of BRL 1,500,000.00 and variable costs of BRL 90.00 per occupied room, that is, per day-room. The hotel is open 365 days a year and is subject to a 34% income tax. For it to be at the economic break-even point, what should be the daily price P for an occupancy rate of 40% for the hotel to give an annual return of 10% on the investment made by the partners in its construction. The amount invested was BRL 10,000,000.00.

a) $182.17

b) $165.69

c) $158.84

d) $134.41

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