Multiple Choice
Suppose a Holiday Inn Hotel has annual fixed costs applicable to its rooms of $1.2 million for its 300-room hotel.Average daily room rents are $50 per room,and average variable costs are $10 for each room rented.It operates 365 days per year.What is the break-even point in number of rooms rented?
A) 24,000
B) 30,000
C) 100,000
D) 120,000
Correct Answer:
Verified
Correct Answer:
Verified
Q32: _ is the relative proportions or combinations
Q87: In highly leveraged companies,small changes in sales
Q88: The break-even point is the level of
Q89: What happens when the cost-driver activity level
Q90: As the sales volume increases in the
Q91: Which of the following cost drivers would
Q94: To control costs,managers should focus their efforts
Q95: Variable costs _.<br>A)vary per unit<br>B)are fixed in
Q97: The profitability of a given product guides
Q134: Gokey Company has a contribution-margin ratio of