The Green Acres Inn is trying to determine its break-even point. The inn has 155 rooms that it rents at $186 a night. Operating costs are as follows.
Salaries $19,220 per month
Utilities $3,410 per month
Depreciation $3,100 per month
Maintenance $310 per month
Maid service $34.10 per room
Other costs $86.80 per room
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.