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The Green Acres Inn is trying to determine its break-even point. The inn has 50 rooms that it rents at $75 a night. Operating costs
The Green Acres Inn is trying to determine its break-even point. The inn has 50 rooms that it rents at $75 a night. Operating costs are as follows.
Salaries |
| $8,610 | per month |
Utilities |
| $1,845 | per month |
Depreciation |
| $1,230 | per month |
Maintenance |
| $615 | per month |
Maid service |
| $9 | per room |
Other costs |
| $36 | per room |
Determine the inns break-even point in (1) number of rented rooms per month and (2) dollars.
(1) |
| Break-even point |
| rooms | |
(2) |
| Break-even point |
| $ |
|
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