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A newly opened bed-and-breakfast projects the following:
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Monthly fixed costs $6000
Variable cost per occupied room per night $20
Revenue per occupied room per night $75
If there are 12 rooms available, what percentage of rooms would have to be occupied, on average, to break even?
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https://brainmass.com/business/business-management/quantitative-methods-case-63579
Solution Preview
Contribution per room per night = Revenue – variable cost = $75-$20 …
