Roppongi Car Park is a small paid parking lot located in central Tokyo. Roppongi has fixed costs (rent of the land that it sits on) of ¥990,000 per month. They expect to charge ¥3,000 to park one car for one day. Assume that all customers park for the entire day. The lot has a capacity of 18 cars and only operates on weekdays (assume a total of 20 weekdays per month). In addition, Roppongi hires a lot attendant who parks the cars and collects the cash. The attendant is paid 10% of revenues plus ¥150 per car parked. 1. Given the information above, what is Roppongi’s breakeven point (in number of cars parked per month)?
Roppongi Car Park is a small paid parking lot located in central Tokyo. Roppongi has fixed costs (rent of the land that it sits on) of ¥990,000 per month. They expect to charge ¥3,000 to park one car for one day. Assume that all customers park for the entire day. The lot has a capacity of 18 cars and only operates on weekdays (assume a total of 20 weekdays per month). In addition, Roppongi hires a lot attendant who parks the cars and collects the cash. The attendant is paid 10% of revenues plus ¥150 per car parked. 1. Given the information above, what is Roppongi’s breakeven point (in number of cars parked per month)?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Roppongi Car Park is a small paid parking lot located in central
Tokyo. Roppongi has fixed costs (rent of the land that it sits on) of
¥990,000 per month. They expect to charge ¥3,000 to park one car
for one day. Assume that all customers park for the entire day. The
lot has a capacity of 18 cars and only operates on weekdays (assume
a total of 20 weekdays per month).
In addition, Roppongi hires a lot attendant who parks the cars and
collects the cash. The attendant is paid 10% of revenues plus ¥150
per car parked.
1. Given the information above, what is Roppongi’s breakeven point (in number of cars parked per
month)?
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