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Shady Pines 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
Shady Pines 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 |
Required #1
Determine the inns break-even point in based on the number of rented rooms per month.
Required #2
Determine the inns break-even point in terms of total room revenue required.
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