Determine the inn break-even point in dollars

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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

per month

Utilities

$1,400

per month

Depreciation

$1,000

per month

Maintenance

$2,140

per month

Maid service

$10

per room

Other costs

$20

per room

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.

Reference no: EM132064900

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