The Palmer Acres Inn is trying to determine its break even
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.

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