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The Richibouctou Inn is trying to determine its break-even point. The inn has72rooms available that are rented at $40a night. Operating costs are as follows:
The Richibouctou Inn is trying to determine its break-even point. The inn has72rooms available that are rented at $40a night. Operating costs are as follows:
Salaries
$5,114
per month
Maintenance
$580per month
Utilities$1,850per monthHousekeeping service$6per roomDepreciation
$1,960per month
Other costs
$18per room
Determine the inn's break-even point in the number of rented rooms per month and dollars.
Break-even point
roomsBreak-even point$
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