How to determine the inn break-even point in the number

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The Richibouctou Inn is trying to determine its break-even point. The inn has 72 rooms available that are rented at $40 a night. Operating costs are as follows:

Salaries                   $5,114 per month

Maintenance             $580  per month

Utilities                  $1,850 per month

Housekeeping service $6    per room

Depreciation           $1,960 per month

Other costs              $18   per room

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

Reference no: EM132658232

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