The Oriole Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at $56 a night. Operating costs are as follows. Salaries Utilities Depreciation Maintenance Maid service Other costs $5,800 2.700 1,300 700 8 34 per month per month per month per month per room per room

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Determine the inn's break-even point in (1) number of rented rooms per month and (2) sales dollars.
1.
2.
Break-even point in rooms
Break-even point in dollars
$
per month
Transcribed Image Text:Determine the inn's break-even point in (1) number of rented rooms per month and (2) sales dollars. 1. 2. Break-even point in rooms Break-even point in dollars $ per month
The Oriole Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at $56 a night. Operating costs are as
follows.
Salaries
Utilities
Maintenance
Depreciation 1,300
Maid service
$5,800
Other costs
2.700
700
8
34
per month
per month
per month
per month
per room.
per room
Transcribed Image Text:The Oriole Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at $56 a night. Operating costs are as follows. Salaries Utilities Maintenance Depreciation 1,300 Maid service $5,800 Other costs 2.700 700 8 34 per month per month per month per month per room. per room
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