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Determine how many more rooms must be sold in order

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Question 1: According to the financial data of the Beach Bum hotel, ADR and UVC for the current period are $200.00 and $110.00 respectively. Imagine that the FC will increase by $65,000 due to new lease agreement for the next period. How many more rooms must be sold in order for the management of Beach Bum to cover the increased FC and still be at the breakeven for the next period?

Group of answer choices

Option 1: 676 rooms

Option 2: 500 rooms

Option 3: 722 rooms

Option 4: 814 rooms

Reference no: EM132537395

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