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 | $5,900 per month |
| Utilities | $1,100 per month |
| Depreciation | $1,000 per month |
| Maintenance | $100 per month |
| Maid service | $14 per room |
| Other costs | $28 per room |
Instructions
Determine the inn's break-even point in (a) number of rented rooms per month and (b) dollars
Solution
