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Determine the inn’s break-even point in (1) number of rented rooms per month and (2) dollars. 1.   Break-even point in rooms       2.   Break-even point   $  per month

Determine the inn’s break-even point in (1) number of rented rooms per month and (2) dollars. 1.   Break-even point in rooms       2.   Break-even point   $  per month

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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The Soma Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at $60 a night. Operating costs are as follows.

Salaries   $10,600  per month
Utilities   2,400  per month
Depreciation   1,500  per month
Maintenance   800  per month
Maid service   8  per room
Other costs   34  per room

(a)

 
 
Determine the inn’s break-even point in (1) number of rented rooms per month and (2) dollars.

1.   Break-even point in rooms  

 

  
2.   Break-even point  

$

  per month
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