E13-9 Compute break-even point
The Palmer Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at
$60 a night. Operating costs are as follows.
	Salaries	$5,900 per month
	Utilities	$1,100 per month
	Depreciation	$1,000 per month
	Maintenance	$100 per month
	Maid Service	$14 per room
	Other costs	$28 per room
Instructions
Determine the inn's break-even point in (a) number of rented rooms per month and (b) dollars.
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" .
(a)	Determine the inn's break-even point in number of rented rooms per month
	Contribution margin per room
	Rent per room	Value
	Variable cost per room	?
	Contribution margin per room	?
	Contribution margin ratio
	Contribution margin per room	Value
	Rent per room	Value
	Contribution margin ratio	?
	Fixed costs	?
	Break-even point in rooms
	Fixed costs	Value
	Contribution margin per room	Value
	Break-even point in rooms	?
(b)	Determine the inn's break-even point in dollars.
	Break-even point in dollars
	Break-even point in rooms	Value
	Rent per room	Value
	Break-even point in dollars	?
	OR
	Fixed costs	Value
	Contribution margin ratio	Value
	Break-even point in dollars	?
When you have completed E13-9, consider the following additional question.
	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 have on the calculations.