Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Soma Inn is trying to determine its break-even point. The inn has 75 rooms that arerented at $60 anight. Operating costs are as follows

image text in transcribed

The Soma Inn is trying to determine its break-even point. The inn has 75 rooms that arerented at $60 anight. Operating costs are as follows $9.700 per month Salaries Utilities 2.700 per month Depreciation 1.300 per month Maintenance 700 per month Maid service 8 per room Other costs 34 per room Determine the inn's break-even point in (1) number of rented rocms per month and (2) dollars 1. Break-even paint in rooms 2. Break even point cTexthook and Media If the inn plans on renting an average of 50 rooms per day lassuming a 30 day month), what is (1) the monthly margin of safety in dollars and (2) the margin of safety ratio? (Round ratio to 0 decimal places, eg. 10) 1 Margin of safcty 2. Margin of safety ratio Yard Tools manufactures lawimowers, weed-trimmers, and chainsaws. Its sales mix and unit contribution margin are as follows. Unit Contribution Margin Sales Mix 20% 35 $23 Wcod trimmers 50% 37 30 % Yard Tools has fixed costs of $4,380,800. Compute the number of units of cach product that Yard Tools must sell in orderto brcak even under this product mix. (Use the Weighted-Average Unit Contribution Margin Ratio rounded to 2 decimal places es 0.25 and round final answers to O decimal places, es. 2,510) units Weod trimmers units units

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Handbook Of Energy Audits

Authors: Albert Thumann, William J. Younger

6th Edition

0824709985, 978-0824709983

More Books

Students also viewed these Accounting questions