Write 4 page essay on the topic Managing Finance….Accounting.
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break even volume is equal to fixed costs divided by the differences of the unit sales price and the unit variable costs. Since no proportion is given as regards the sales of the hotel whether for single or double occupancy, the 70% occupancy rate of rooms is computed for single occupancy. This gives a break even sales volume of 25480. With the fixed costs being ‘5600000 and the unit variable costs at ’15, computing it algebraically, the unit sales price is ‘234.78 in order for the hotel to achieve break even.