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Friday 8 April 2016

The Green Acres Inn is trying to determine its break-even point.


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

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.

Get the SOLUTION here

Accounting homeworkhelp

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