The Pharoah Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $65 a night. Operating costs are as follow Salaries Utilities Depreciation Maintenance Maid service Other costs $5,200 per month $1,200 per month $1.300 per month $3,324 per month $13 $26 per room Determine the inn's break-even point in number of rented rooms per month. Break-even point per room eTextbook and Media Determine the inn's break-even point in dollars. Break-even point in 5 rooms

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The Pharoah Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $65 a night. Operating costs are as follows:
Salaries
Utilities
Depreciation
Maintenance
Maid service
Other costs
$5,200 per month
$1,200 per month
$1,300 per month
$3,324
per month
$13 per room
$26 per room
Determine the inn's break-even point in number of rented rooms per month.
Break-even point
eTextbook and Media
Determine the inn's break-even point in dollars.
Break-even point in
5
rooms
Transcribed Image Text:The Pharoah Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $65 a night. Operating costs are as follows: Salaries Utilities Depreciation Maintenance Maid service Other costs $5,200 per month $1,200 per month $1,300 per month $3,324 per month $13 per room $26 per room Determine the inn's break-even point in number of rented rooms per month. Break-even point eTextbook and Media Determine the inn's break-even point in dollars. Break-even point in 5 rooms
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