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E5.9 Compute break-even point in sales units and in sales dollars The Palmer Acres Inn is trying to determine its break-even point during its off-peak

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E5.9 Compute break-even point in sales units and in sales dollars 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 Property tax Depreciation (straight-line) Maintenance Maid service Other costs $ 5,900 1,100 1,000 100 14 28 per month per month per month per month per room per room Instructions Determine the inn's break-even point in (a) number of rented rooms per month and (b) sales dollars. NOTE: Enter a formula, a cell reference, or a value (if you are unable to reference a cell), into the yellow shaded input cells. a. Contribution margin per room Rent per room Variable cost per room Contribution margin per room Contribution margin ratio Contribution margin per room Rent per room Contribution margin ratio Fixed costs Break-even point in rooms Fixed costs Contribution margin per room Break-even point in rooms b. Break-even point in dollars Break-even point in rooms Rent per room Break-even point in dollars OR Fixed costs Contribution margin ratio Break-even point in dollars When you have completed E5.9, respond to the additional question, on the E5.9 Add Ques worksheet

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