Answer:
a. $2,000
b. 23.53 days
Step-by-step explanation:
a. Break even point = Fixed cost ÷ Contribution per unit
Contribution per unit = Selling price per unit- variable cost per unit
= $75 - $15
= $60
Break even point = $120,000 ÷ $60
= $2,000
b. Rooms occupied per day = 100 × 85%
= 85 rooms
Days to break even = Break even point ÷ Rooms occupied per day
= $2,000 ÷ 85
= 23.53 days