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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
Depreciation
1,000
Maintenance
100
Maid service
11
per room
Other costs
28
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.
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