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Use This Information to Answer the Next Two Questions

Question 13

Multiple Choice

Use this information to answer the next two questions. The following data relates to the Bravo Hotel that provides overnight accommodation but no other services:
Fixed costs: $240,000 per annum; Variable cost per room night sold: $15; Average selling price per room night: $65; Annual after tax target profit: $288,000; Bravo's profit taxed at: 40%.
-What is the Bravo Hotel's monthly breakeven in terms of room nights sold?


A) 1,200
B) 800
C) 600
D) 400
E) None of the above

Correct Answer:

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