The owners of Evening Star Motel want to know potential maximum profits and the break-even occupancy for the operation. Evening Star Motel is a budget operation to attract business people and families on low budgets. A study of costs shows a difference between summer and winter operation. Swimming pool maintenance adds to summer costs while utilities (heat and lights) add to winter costs. Variable costs have been determined on the basis of cost per room occupied per day and are set forth as follows: Laundry Heat and light (Summer) Heat and light (Winter) Repairs Supplies Cost Per Room $1.80 $1.00 $2.00 $0.75 $1.60 $4.00 $1.50 $0.50 Taxes and insurance Maintenance Pool maintenance (Summer only) Fixed costs per month of operation have been estimated as follows: $12,000 Housekeeping Management Desk Service Repairs and maintenance Taxes Insurance Heat and light Depreciation - motel Depreciation - furnishing Pool maintenance and personnel (Summer only) 16,000 2,800 1,400 1,430 1,120 800 25,000 12,000 1,750