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The wayside motel has monthly fixed costs of $6,000, and its average daily rate (adr) is $50. if its variable costs per room are 40% of adr, how many rooms must be sold to break…

The wayside motel has monthly fixed costs of $6,000, and its average daily rate (adr) is $50. if its variable costs per room are 40% of adr, how many rooms must be sold to break…
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The wayside motel has monthly fixed costs of $6,000, and its average daily rate (adr) is $50. if its variable costs per room are 40% of adr, how many rooms must be sold to break even?

a. 120 rooms
b. 150 rooms
c. 200 rooms
d. 300 rooms

User Gagan Gupta
by
7.3k points

1 Answer

6 votes
The answer is c. 200 rooms
User JonasMH
by
9.3k points
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