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As part of their application for a loan to buy Lakeside Farm, a property they hope to develop as a bed-and-breakfast operation, the prospective owners have projected: Monthly fixed cost (loan payment, taxes, insurance, maintenance)   $6000 Variable cost per occupied room per night                                           $ 20 Revenue per occupied room per night                                                   $ 75 Question: Suppose 5 rooms can be sold per night, how much they should charge per night in order to break even?

As part of their application for a loan to buy Lakeside Farm, a property they hope to develop as a bed-and-breakfast operation, the prospective owners have projected: Monthly fixed cost (loan payment, taxes, insurance, maintenance)   $6000 Variable cost per occupied room per night                                           $ 20 Revenue per occupied room per night                                                   $ 75 Question: Suppose 5 rooms can be sold per night, how much they should charge per night in order to break even?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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  1. As part of their application for a loan to buy Lakeside Farm, a property they hope to develop as a bed-and-breakfast operation, the prospective owners have projected:

Monthly fixed cost (loan payment, taxes, insurance, maintenance)   $6000

Variable cost per occupied room per night                                           $ 20

Revenue per occupied room per night                                                   $ 75

Question: Suppose 5 rooms can be sold per night, how much they should charge per night in order to break even? 

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