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The Blossom Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at $56 a night. Operating costs are

The Blossom Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at $56 a night. Operating costs are as follows.

Salaries $8,350 per month
Utilities 2,100 per month
Depreciation 1,400 per month
Maintenance 750 per month
Maid service 8 per room
Other costs 34 per room

(a)

Determine the inns break-even point in (1) number of rented rooms per month and (2) sales dollars.

1.

Break-even point in rooms

2.

Break-even point in dollars

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