The Lake Shore Inn is trying to determine its break-even point. The inn has 50 rooms that it rents at $60 a night. Operating costs are as follows.
Salaries ...... $7,200 per month
Utilities ...... $1,500 per month
Depreciation .... $1,200 per month
Maintenance .... $300 per month
Maid service ....... $8 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.