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The Soma Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at $60a night. Operating costs are as
The Soma Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at $60a night. Operating costs are as follows.
Salaries $10,600per month
Utilities 2,400per month
Depreciation 1,500per month
Maintenance 800per month
Maid service 8per room
Other costs 34per room
Determine the inn's break-even point in (1) number of rented rooms per month and (2) dollars.
1.Break-even point in rooms ____________
2.Break-even point $____________per month
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