Question - Determine the inn's break-even point in number of rented rooms per month. The Palmer 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
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per month
|
|
Utilities
|
$1,400
|
per month
|
|
Depreciation
|
$1,000
|
per month
|
|
Maintenance
|
$2,140
|
per month
|
|
Maid service
|
$10
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per room
|
|
Other costs
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$20
|
per room
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Determine the inn's break-even point in number of rented rooms per month.
Determine the inn's break-even point in dollars.
Determine the inn's break-even point in dollars.