The Ivanhoe Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $55 a night. Operating costs are as follows: Salaries $5,700 per month Utilities $1,000 per month Depreciation $1,300 per month Maintenance. $1,240 per month Maid service $11 per room Other costs $22 per room Determine the inn's break-even point in number of rented rooms per month. Break-even point rooms
The Ivanhoe Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $55 a night. Operating costs are as follows: Salaries $5,700 per month Utilities $1,000 per month Depreciation $1,300 per month Maintenance. $1,240 per month Maid service $11 per room Other costs $22 per room Determine the inn's break-even point in number of rented rooms per month. Break-even point rooms
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 5EB: Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90....
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![Determine the inn's break-even point in dollars.
Break-even point in $
The Ivanhoe Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at
$55 a night. Operating costs are as follows:
Salaries
$5,700 per month
Utilities
$1,000
per month
Depreciation $1,300 per month
Maintenance
$1,240 per month.
Maid service
$11 per room
A
Other costs
$22 per room.
Determine the inn's break-even point in number of rented rooms per month.
Break-even point
rooms](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F36498783-586d-498e-b738-2d2ae841a800%2F2fcbb577-123b-4a48-8072-999f1830322c%2Fcc8gtiv_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Determine the inn's break-even point in dollars.
Break-even point in $
The Ivanhoe Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at
$55 a night. Operating costs are as follows:
Salaries
$5,700 per month
Utilities
$1,000
per month
Depreciation $1,300 per month
Maintenance
$1,240 per month.
Maid service
$11 per room
A
Other costs
$22 per room.
Determine the inn's break-even point in number of rented rooms per month.
Break-even point
rooms
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