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E22-6. Compute break-even point. (LO 3, 4) The Palmer Acres Inn is trying to determine its break-even point during its off-peak season. The inn has
E22-6. Compute break-even point. (LO 3, 4) 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.
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