Economy Inn maintains an average selling price per room of $40 and?

Question

Economy Inn maintains an average selling price per room of $40 and
incurs a variable cost per room sold of $10. If the Property's fixed costs are $24,000 for the
month, the breakeven point for the month would be:


A. 240 rooms sold
B. 480 rooms sold
C. 600 rooms sold
D. 800 rooms sold

Answer 1

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I think you misunderstood the purpose of Yahoo Answers; it's not to help you cheat in academics. If it's to test other Yahoo users of their accounting prowess, then so be it, but I think you're using it for the former reason.

Answer 2

D. 800

Economy inn makes a profit of $30 per room ($40 - $10)
Then has fixed cost of $24,000 so $24K/$30 = 800.