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The Motor Inn is trying to determine its break-even point.The inn has 75 rooms that are rented at $100 a night.Operating costs are as follows.

The Motor Inn is trying to determine its break-even point.The inn has 75 rooms that are rented at $100 a night.Operating costs are as follows.

Salaries $10,600 per month

Utilities 2,400 per month

Depreciation 1,500 per month

Maintenance 800 per month

Maid service 5 per room

Other costs 45 per room

(a) Determine the inn's break-even point in (1) number of rented rooms per month and (2) dollars. (a)(1) Break-even point in rooms Rental per room Variable cost per room Contribution margin per room Fixed costs Contribution margin per room Break-even point in rooms

(a)(2) Break-even point in dollars Contribution margin per room Rental per room Contribution margin ratio Break-even point in rooms Rental per room Break-even point in dollars OR Fixed cost contribution margin ratio Break-even point in dollars

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