Product pricing problem of break-even pricing method

Operating income (1- variable cost rate)-fixed cost = profit

Operating income balance point (1-52%)-34=0: operating income break-even point = $708,300.

Number of rooms * Average house price * Number of days of renting a house per month *( 1- Variable cost rate)-Fixed cost = profit.

500* 100* monthly rental days balance point * (1-52%)/10000-34 = 0: monthly rental days balance point = 14 days (about).

Number of rooms * Average house price * Number of days per month * Room occupancy rate *( 1- variable cost rate)-Fixed cost = profit.

500* 100*30* room occupancy balance point * (1-52%)/10000-34 = 0. It is concluded that the room occupancy rate balance point =47.22% (approximately).

Similarly:

The balance point of monthly sales revenue = 40/(1-50%) = 800,000 USD.

Balance point of monthly rental days =40/6/50%= 147 days (about)

Room occupancy balance =40/6/30/50%=44.44%

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