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Determine the inn break-even point in number of rented rooms

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Reference no: EM133006532

The Sandhill 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
Property tax $ 1,400 per month
Depreciation (straight-line) $ 1,000 per month
Maintenance $ 250 per month
Maid service $ 10 per room
Other costs $ 20 per room

Problem 1: Determine the inn's break-even point in number of rented rooms per month.

Reference no: EM133006532

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