The Palmer Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $70 a night. Operating costs are as follows: Salaries Utilities Depreciation Maintenance Maid service Other costs $5,000 per month $1,200 per month $900 per month $1,657 per month $17 per room $32 per room Determine the inn's break-even point in number of rented rooms per month. Break-even point rooms Determine the inn's break-even point in dollars. Break-even point

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 6EA: Marlin Motors sells a single product with a selling price of $400 with variable costs per unit of...
icon
Related questions
Question
Please do not give solution in image format
The Palmer Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at
$70 a night. Operating costs are as follows:
Salaries
Utilities
Depreciation
Maintenance
Maid service
Other costs
$5,000 per month
$1,200 per month
$900 per month
$1,657 per month
$17 per room
$32 per room
Determine the inn's break-even point in number of rented rooms per month.
Break-even point
rooms
Determine the inn's break-even point in dollars.
Break-even points
Transcribed Image Text:The Palmer Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $70 a night. Operating costs are as follows: Salaries Utilities Depreciation Maintenance Maid service Other costs $5,000 per month $1,200 per month $900 per month $1,657 per month $17 per room $32 per room Determine the inn's break-even point in number of rented rooms per month. Break-even point rooms Determine the inn's break-even point in dollars. Break-even points
Expert Solution
steps

Step by step

Solved in 5 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
Finance
ISBN:
9781285595047
Author:
Weil
Publisher:
Cengage