E$18\mathrm{.}9$ Compute break$-$even point in sales units and in sales dollars

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.

Instructions

Determine the inn's break$-$even point in $($a$)$ number of rented rooms per month and $($b$)$ sales dollars.

NOTE: Enter a formula, a cell reference, or a value $($if you are unable to reference a cell$),$ into the

yellow shaded input cells.

a$.$ Contribution margin per room

Rent per room

Variable cost per room

Contribution margin per room

Contribution margin ratio

Contribution margin per room

Rent per room

Contribution margin ratio

Fixed costs

Break$-$even point in rooms

Fixed costs

Contribution margin per room

Break$-$even point in rooms

b$.$ Break$-$even point in dollars

Break$-$even point in rooms

Rent per room

Break$-$even point in dollars

OR

Fixed costs

Contribution margin ratio

Break$-$even point in dollars

When you have completed E$18\mathrm{.}9,$ respond to the additional question, on the E$18\mathrm{.}9$ Add

Ques worksheet.