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The Crane Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $130 night. Operating costs are as follows: Salaries Property tax Depreciation (straight-line) Maintenance Maid service Other costs $5,600 per month $1,100 per month $1,200 per month $290 per month $35 per room $69 per room

The Crane Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $130 night. Operating costs are as follows: Salaries Property tax Depreciation (straight-line) Maintenance Maid service Other costs $5,600 per month $1,100 per month $1,200 per month $290 per month $35 per room $69 per room

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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(b) * Your answer is incorrect. Determine the inn's break-even point in sales dollars. Break-even point in sales LA
Transcribed Image Text:(b) * Your answer is incorrect. Determine the inn's break-even point in sales dollars. Break-even point in sales LA
The Crane Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $130 a night. Operating costs are as follows: Salaries Property tax Depreciation (straight-line) Maintenance Maid service Other costs (a) Your answer is correct. $5,600 per month $1,100 per month $1,200 per month $290 per month $35 per room $69 per room Determine the inn's break-even point in number of rented rooms per month. Break-even point 315 rooms
Transcribed Image Text:The Crane Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $130 a night. Operating costs are as follows: Salaries Property tax Depreciation (straight-line) Maintenance Maid service Other costs (a) Your answer is correct. $5,600 per month $1,100 per month $1,200 per month $290 per month $35 per room $69 per room Determine the inn's break-even point in number of rented rooms per month. Break-even point 315 rooms
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