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 $60 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

Determine the inn’s break-even point in

(a) Number of rented rooms per month and

(b) Dollars.

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Accounting Principles

ISBN: 9781118566671

11th Edition

Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso

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Question Posted: Mar 22, 2012 02:59 AM

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

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a Contribution margin per room Contribution margin per room Contribution margin ratio 60 11 28 ...View the full answer

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