Determine the inn''s break-even point in dollars

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Reference no: EM131019298

E5-9 The Green Acres Inn is trying to determine its break-even point. The inn has 50 rooms that it rents at $60.00  a night. Operating costs are as follows.

Salaries

$6,200

per month

Utilities

1,100

per month

Depreciation

1,000

per month

Maintenance

100

per month

Maid service

11

per room

Other costs

28

per room

Instructions

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

(2) Determine the inn's break-even point in dollars.

Reference no: EM131019298

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