Budget Inn and Suites sets its ADR to be $115 and only has one room...
70.2K
Verified Solution
Link Copied!
Question
Accounting
Budget Inn and Suites sets its ADR to be $115 and only has one room type. The variable costs per room are $25. All the fixed costs (rent, wages, and others) total $6,500 a month. In the previous month, Budget Inn sold 2,250 rooms. (Income tax rate is 20%).
Please conduct analyses to answer the following questions.
How much net income after tax did the business earn in the previous month?
In the coming month, your target net income to be $185,000 after paying taxes. To achieve this goal, how many rooms you need to sell next month?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
