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The Palmer Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $60
The Palmer Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $60 a night. Operating costs are as follows. Salaries $5,900 per month Utilities $1,100 per month Depreciation $1,000 per month Maintenance $100 per month Maid Service $14 per room Other costs $28 per room Instructions Determine the inn's break-even point in (a) number of rented rooms per month and (b) dollars. NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?". (a) Determine the inn's break-even point in number of rented rooms per month Contribution margin per room Rent per room Value Variable cost per room Contribution margin per room Contribution margin ratio Contribution margin per room Rent per room Contribution margin ratio Value Value Fixed costs Break-even point in rooms Fixed costs Contribution margin per room Break-even point in rooms Value Value (b) Determine the inn's break-even point in dollars. Break-even point in dollars Break-even point in rooms Rent per room Break-even point in dollars Value Value ? OR Fixed costs Contribution margin ratio Break-even point in dollars Value Value
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