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The Carla Vista Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at
The Carla Vista Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $ 40 a night. Operating costs are as follows: Salaries $5,000 per month Property tax $ 1,100 per month Depreciation (straight-line) $ 1,200 per month Maintenance $780 per month Maid service $7 per room Other costs $ 13 per room (a) Determine the inn's break-even point in number of rented rooms per month. Break-even point rooms
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