**Break-Even Analysis for Pharoah Acres Inn**The Pharoah Acres Inn is conducting a break-even analysis to determine the necessary occupancy during its off-peak season. The inn features 50 rooms available for rental at a rate of $65 per night. Below are the monthly operating costs:- **Salaries:** $5,200 per month- **Utilities:** $1,200 per month- **Depreciation:** $1,300 per month- **Maintenance:** $3,324 per month- **Maid service:** $13 per room- **Other costs:** $26 per room**Objective:** Calculate the break-even point represented by the number of rented rooms required per month.*Instructions: Fill in the break-even point calculation to determine the required number of rooms.*[Break-even point: _____ rooms](Note: Ensure that the break-even point calculation takes into account all provided fixed and variable costs to achieve accurate results.) **Determine the Inn's Break-even Point in Dollars**To calculate the financial stability of an inn, it's crucial to determine its break-even point. This is the point where total revenues equal total costs, resulting in neither profit nor loss. Below is a field where you can enter the break-even point value in dollars:**Break-even Point in $:** [Input Field] Understanding and calculating the break-even point helps in financial planning and decision-making, ensuring the business covers all its costs and guides towards profitability.

Fixed cost is constant in total. Where's variable cost will vary per unit. Means for each additional…

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 cost Salaries Utilities Depreciation Maintenance Maid service Other costs $5,200 $1,200 $1,300 $3,324 $13 $26 per month per month per month per month per room per room

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 cost Salaries Utilities Depreciation Maintenance Maid service Other costs $5,200 $1,200 $1,300 $3,324 $13 $26 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

Section: Chapter Questions

Problem 1Q

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