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The Sunland Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $65 a night. Operating costs are as follows:
Salaries $6,500 per month
Utilities $1,300 per month
Depreciation $1,200 per month
Maintenance $1,764 per month
Maid service $13 per room
Other costs $26 per room
Question 1: Determine the inn's break-even point in number of rented rooms per month.
Question 2: Determine the inn's break-even point in dollars.
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