Once a hotel achieves its break-even point, profits accumulate rapidly because fixed expenses and many semi-fixed expenses have been met.

Question

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Once a hotel reaches its break-even point, all fixed and semi-fixed costs are covered by the revenue generated. Beyond this point, most additional revenue contributes directly to profit, as these costs do not increase significantly with each additional guest, leading to a rapid accumulation of profits.

Once a Hotel Achieves Its Break-Even Point, Profits Accumulate Rapidly