Suppose the Holiday Inn Hotel Has Annual Fixed Costs Applicable

Multiple Choice

Suppose the Holiday Inn Hotel has annual fixed costs applicable to its rooms of $1.2 million for its 300-room hotel, average daily room rents of $50, and average variable costs of $10 for each room rented.It operates 365 days per year.The percent of occupancy for the year needed to breakeven is _____.

A) 3.65%
B) 27.4%
C) 25%
D) 100%