Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hile D Home Insert Page Layout Formulas Data Review ViewHelpDYMO Label QuickBooks PROTECTED VIEW Be careful--files from the Internet can contain viruses. Unless you need

image text in transcribed
image text in transcribed
Hile D Home Insert Page Layout Formulas Data Review ViewHelpDYMO Label QuickBooks PROTECTED VIEW Be careful--files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View Enable Editing C D E F G H 1 E5-9 Compute break-even point 2 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 3 $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 10 11 Instructions 12 Determine the inn's break-even point in (a) number of rented rooms per month and (b) dollars. 13 NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?". 15 17(a) Determine the Inn's break-even point in number of rented rooms per month 18 Contribution margin per room 19 Rent per room Value Variable cost per room Contribution margin per room Contribution margin ratio Contribution margin per room Rent per room Contribution margin ratio Value Value Fixed costs Break-even point in rooms E5- 9 5-2A CD:5 * Type here to such U PROTECTED VIEW Be carelul-liles Irom the Internet can contain viruses. Unless you need to edit it's safer to stay in Protected View. Enat 326 D E F G H I Rent per room Contribution margin ratio Value ? L Fixed costs Break-even point in rooms Fixed costs Contribution margin per room Break-even point in rooms Value Value 36 (b) Determine the inn's break-even point in dollars. Break-even point in dollars Break-even point in rooms Rent per room Break-even point in dollars Value Value OR Fixed costs Contribution margin ratio Break-even point in dollars Value Value 50. When you have completed E5-9, consider the following additional question. 511. Assume that total fixed costs changed to $8,750 per month and the rental rate per room for a night changed to $85. Show Impact of these changes have on the calculations

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Susan Hamlen

5th Edition

1618534246, 9781618534248

More Books

Students also viewed these Accounting questions

Question

Would another approach to the decision have worked better?

Answered: 1 week ago

Question

Respond to the following.

Answered: 1 week ago