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The Soma Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at $52 a night. Operating costs are
The Soma Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at $52 a night. Operating costs are as follows.
Salaries | $4,900 | per month | |
Utilities | 2,500 | per month | |
Depreciation | 1,500 | per month | |
Maintenance | 850 | per month | |
Maid service | 7 | per room | |
Other costs | 32 | per room |
Determine the inns 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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