The Green Acres Inn is trying to determine its break-even point. The inn has 50 rooms that

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The Green Acres Inn is trying to determine its break-even point. The inn has 50 rooms that it rents at $50 a night. Operating costs are as follows:

Salaries..............................$5,642 per month

Utilities..............................$1,209 per month

Depreciation..........................$806 per month

Maintenance..........................$403 per month

Maid service.............................$6 per room

Other costs..............................$24 per room

Determine the inns break-even point in (1) number of rented rooms per month and (2) dollars.

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Managerial Accounting Tools for business decision making

ISBN: 978-1118096895

6th Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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