Determine the monthly operating break-even point

Reference no: EM13904827

The Crazy Horse Hotel has a capacity to stable 50 horses. The fee for stabling a horse is $100 per month. Maintenance, depreciation, and other fixed operating costs total $1,200 per month. Variable operating costs per horse are $12 per month for hay and bedding and $8 per month for grain.

a. Determine the monthly operating break-even point (in horses stabled).

b. Compute the monthly operating profit if an average of 40 horses are stabled.

Reference no: EM13904827

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