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:
Verified
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A)
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A) The surplus of revenue
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