Solution-Determine the inn break-even point in dollars per

Determine the inn break-even point in dollars per month

Reference no: EM132447878

Question - The Dickson Inn is trying to determine its break-even point. The inn has 72 rooms that are rented at $50 per room-night. Operating costs are as follows. In a 30 day month and at full capacity, the Inn can have as many as 2,160 room-nights (72 rooms X 30 days).

Salaries $15,000 per month

Utilities 2,000 per month

Depreciation 2,500 per month

Maintenance 500 per month

Maid service 5 per room-night

Other costs 25 per room-night

Instructions:

(a) Determine the Inn's break-even point in number of room-nights per month.

(b) Determine the inn's break-even point in dollars per month.

Reference no: EM132447878

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Determine the inn break-even point in dollars per month

Reference no: EM132447878

Reference no: EM132447878

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