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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