Determine the inn break-even point

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Question - 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 room

Maid Service $14 per room

Other Costs $28 per room

Determine the Inn's break-even point in (a) number of rented rooms per month and (b) dollars.

Reference no: EM132031556

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