I am given these costs and have to indentify variable and fixed costs for a hotel.
Costs are per guest:
Cost for 1 week stay 100
Mini bus 10
Additional staff are employed if more than 10 guests stay for 200 per week for 30 weeks.
Rent and rates 4,000
Garden maintenance 1,000
What would be the break even point in units? I’m stuck and can’t get the correct answer. If someone could explain how to get an answer it will be greatly appreciated. I don’t want the actual answer just and explanation how to do it. Thank you.
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