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-7) Jane Botosan operates a bed and breakfast hotel in a resort area near Lake Michigan. Depreciation on the hotel is $60,200 per year. Jane
-7) Jane Botosan operates a bed and breakfast hotel in a resort area near Lake Michigan. Depreciation on the hotel is $60,200 per year. Jane employs a maintenance person at an annual salary of $41,000 and a cleaning person at an annual salary of $24,000. Real estate taxes are $10,000 per year. The rooms rent at an average price of $126 per person per night including breakfast. Other costs are laundry and cleaning service at a cost of $10.00 per person per night and the cost of food which is $5.00 per person per night. Jane is considering changing the business strategy. She considers installing additional cleaning machines which will decrease laundry and cleaning service per person per night by $3.00. However, fixed depreciation cost will increase by $4,000. Determine the number of rentals at which Jane would be indifferent between the current and proposed business models
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