The Sandhill Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rent at $120 a night. Operating costs are as follows: Salaries $5400 per...


The Sandhill Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rent at $120 a night. Operating costs are as follows:






























Salaries



$5400 per month



Utilities



$1300 per month



Depreciation



$1100 per month



Maintenance



$2520 per month



Maid service



$33 per room



Other costs



$63 per room



a/ Determine the inn’s break-even point in number of rented rooms per month.


b/Determine the inn’s break-even point in dollars.



Jun 01, 2022
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