# 21 suppose a holiday inn hotel has annual fixed costs applicable to its rooms of 1 2 4309295

21) Suppose a Holiday Inn Hotel has annual fixed costs applicable to its rooms of \$1.2 million for its 300-room hotel.  Average daily room rents are \$50 per room and average variable costs are \$10 for each room rented.  It operates 365 days per year.  What percent of occupancy is needed to breakeven?

A) 3.65%

B) 25%

C) 27.4%

D) 34.3%

22) Deadwood Hospital has variable costs of 50% of total revenues and fixed costs of \$40 million per year.  There are 40,000 patient-days estimated for the next year.  The break-even point expressed in total revenue is ________.

A) \$10 million

B) \$40 million

C) \$80 million

D) \$90 million

23) Medina Hospital has variable costs of 75% of total revenues and fixed costs of \$40 million per year.  There are 40,000 patient-days estimated for next year.  What is the average daily revenue per patient necessary to breakeven?

A) \$250

B) \$1,000

C) \$4,000

D) \$20,000

24) The sales price is \$30 per unit, the contribution margin is \$8 per unit and total fixed costs are \$32,000.  What is the break-even point in units?

A) 857

B) 1,200

C) 2,000

D) 4,000

25) If the total amount of fixed costs increases, what is the effect on the break-even point?  (Assume no other changes.)

A) The break-even point increases.

B) The break-even point decreases.

C) The break-even point remains the same.

D) The break-even point will be zero.

26) If the variable cost per unit increases, what is the effect on the break-even point?  (Assume no other changes.)

A) The break-even point increases.

B) The break-even point decreases.

C) The break-even point remains the same.

D) The break-even point is zero.

27) If the selling price per unit increases, what is the effect on the break-even point?  (Assume no other changes.)

A) The break-even point increases.

B) The break-even point decreases.

C) The break-even point remains the same.

D) The break-even point is zero.

28) The break-even point is the level of sales at which revenue equals fixed costs.

29) At the break-even point, net income may be positive.

30) The break-even point is when enough units are sold that total contribution margin equals total variable costs.

1. Start by sharing the instructions of your paper with us
2. And then follow the progressive flow.
3. Have an issue, chat with us now

Regards,

Cathy, CS.