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

Principles of Accounting Volume 1
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ISBN:9781947172685
Author:OpenStax
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Chapter10: Inventory
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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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