Exercise 11-9 (Part Level Submission)

The Flounder Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $145 a night. Operating costs are as follows:

Salaries		$8,700	per month
Utilities		$1,500	per month
Depreciation		$1,100	per month
Maintenance		$590	per month
Maid service		$39	per room
Other costs		$77	per room

(a)

Determine the inns break-even point in a number of rented rooms per month.

Break-even point

rooms

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