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The Brambles Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $115
The Brambles Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $115 a night. Operating costs are as follows:
Salaries $6,900 per month
Utilities $1,200 per month
Depreciation $1,200 per month
Maintenance $130 per month
Maid service $31 per room
Other costs $61 per room
a. Determine the inn's break-even point in number of rented rooms per month.
b. Determine the inn's break-even point in dollars.
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