The Sandhill Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rent at $120 a night. Operating costs are as follows: Salaries $5400 per month Utilities $1300 per month Depreciation $1100 per month Maintenance $2520 per month Maid service $33 per room Other costs $63 per room a/ Determine the inn’s break-even point in number of rented rooms per month. b/Determine the inn’s break-even point in dollars.
The Sandhill Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rent at $120 a night. Operating costs are as follows: Salaries $5400 per month Utilities $1300 per month Depreciation $1100 per month Maintenance $2520 per month Maid service $33 per room Other costs $63 per room a/ Determine the inn’s break-even point in number of rented rooms per month. b/Determine the inn’s break-even point in dollars.
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 11EA: Markson and Sons leases a copy machine with terms that include a fixed fee each month plus acharge...
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The Sandhill Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rent at $120 a night. Operating costs are as follows:
Salaries |
$5400 per month |
Utilities |
$1300 per month |
Depreciation |
$1100 per month |
Maintenance |
$2520 per month |
Maid service |
$33 per room |
Other costs |
$63 per room |
a/ Determine the inn’s break-even point in number of rented rooms per month.
b/Determine the inn’s break-even point in dollars.
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