Break Even Point (BEP) / Room Nights (RN)
The break–even point (BEP) or break–even level represents the sales amount—in either unit (quantity) or revenue (sales) terms—that is required to cover total costs, consisting of both fixed and variable costs to the company. Total profit at the break–even point is zero.
- marginal return = ADR – Variable costs
- BEP RN = Fix costs / marginal return per RN
Break Even Point (BEP) / Revenue
- Marginal return quote = marginal return per RN / ADR
- BEP Revenue = Fix costs / marginal return per RN
