breakeven - Breakeven Analysis Price 50 FC 1000 VC/unit 10...

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Breakeven AnalysisBreakeven point is 25 roomsPrice50FC1000VC/unit10Rooms05101520253035404550Revenue02505007501000125015001750200022502500FC10001000100010001000100010001000100010001000VC050100150200250300350400450500Tot Cost10001050110011501200125013001350140014501500Profit-1000-800-600-400-2000200400600800100005101520253035404550050010001500200025003000Breakeven AnalysisRevenueTot CostNumber of Rooms RentedDollars
Crossover AnalysisCase 1Case 2Price5070FC10001800Crossover point is 40 rooms, since both alternatives yield the VC/unit1010same profit of $600 at that point.Case 1Rooms0102030405060708090100Rev0500100015002000250030003500400045005000FC10001000100010001000100010001000100010001000VC01002003004005006007008009001000Tot Cost10001100120013001400150016001700180019002000Profit 1-1000-600-200200600100014001800220026003000Case 2Rooms0102030405060708090100Rev0700140021002800350042004900560063007000FC18001800180018001800180018001800180018001800VC01002003004005006007008009001000Tot Cost18001900200021002200230024002500260027002800Profit 2-1800-1200-60006001200180024003000360042000102030405060708090100-3000-2000-1000010002000300040005000Crossover AnalysisProfit 1Profit 2# Rooms$ Profit
Pricing Strategy ExampleMax Rooms100FC1000Demand = 200 - 3*pVC/unit10InterceptSlope 2003Price01020304050607080Rooms Demanded200170140110805020-10-40Rooms Rented

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