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Suppose theHoliday Inn Hotel has annual fixed costs applicable to its rooms of 12 million for its 300 room hotel average daily room rents of $0 and average variable costs of 10 for each room

Suppose the Holiday Inn Hotel has annual fixed costs applicable to its rooms of $1.2 million for its 300-room hotel, average daily room rents of $50, and average variable costs of $10 for each room rented. It operates 365 days per year. The percent of occupancy for the year needed to breakeven is _____.
a. 3.65%
b. 27.4%
c. 25% 
d. 100% 

Jun 10 2021 View more View Less

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