Suppose Shady Lane Hotel Has Annual Fixed Costs Applicable to Its

Multiple Choice

Suppose Shady Lane Hotel has annual fixed costs applicable to its rooms of $1.0 million for its 300-room hotel.Average daily room rents are $60 per room and average variable costs are $10 for each room rented.It operates 365 days per year.What percent of occupancy is needed to breakeven?

A) 3.65%
B) 18.3%
C) 27.4%
D) 34.3%