The Green Acres Inn is trying to determine its break-even point.
accounting teacher (Not rated)
(Not rated)
E5-9 The Green Acres Inn is trying to determine its break-even point. The inn has 50 rooms that it rents at $60.00 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
(1) Determine the inn’s break-even point in number of rented rooms per month.
(2) Determine the inn’s break-even point in dollars.
10 years ago
The Green Acres Inn is trying to determine its break-even point.
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e5-9_the_green_acres.xls
