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The Green Acres Inn is trying to determine its break-even point. The inn has 155 rooms that it rents at $186 a night. Operating costs
The Green Acres Inn is trying to determine its break-even point. The inn has 155 rooms that it rents at $186 a night. Operating costs are as follows.
Salaries | $19,220 | per month | |
Utilities | $3,410 | per month | |
Depreciation | $3,100 | per month | |
Maintenance | $310 | per month | |
Maid service | $34.10 | per room | |
Other costs | $86.80 | per room |
1. Determine the inns break-even point in number of rented rooms per month.
2. Determine the inn's break-even point in dollars.
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