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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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