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Question - Determine the inn's break-even point in number of rented rooms per month. 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
$8,000
per month
Utilities
$1,400
Depreciation
$1,000
Maintenance
$2,140
Maid service
$10
per room
Other costs
$20
Determine the inn's break-even point in number of rented rooms per month.
Determine the inn's break-even point in dollars.
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