# excel 19 - E19-9 Solution(a(b Contribution margin per room...

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E19-9 Solution (a) Contribution margin per room Rent per room \$60 Variable cost per room \$42 Contribution margin per room \$18 Contribution margin ratio Contribution margin per room \$18 Rent per room \$60 Contribution margin ratio 30% Fixed costs \$8,100 Break-even point in rooms Fixed costs \$8,100 Contribution margin per room \$18 Break-even point in rooms 450 (b) Break-even point in dollars Break-even point in rooms 450 Rent per room \$60 Break-even point in dollars \$27,000 OR Fixed costs \$8,100 Contribution margin ratio 30% Break-even point in dollars \$27,000

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E19-9 Solution to additional question 1. Assume that total fixed costs changed to \$8,750 per month and the rental rate per room for a night changed to \$65. Show impact of these changes on calculations. Contribution margin per room Rent per room \$65 Variable cost per room \$42 Contribution margin per room \$23 Contribution margin ratio Contribution margin per room \$23 Rent per room \$65 Contribution margin ratio 35% Fixed costs \$8,750 Break-even point in rooms Fixed costs \$8,750 Contribution margin per room \$23
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