The Sandhill Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rent at $120 a night. Operating costs are as follows:Salaries$5400 per monthUtilities$1300 per monthDepreciation$1100 per monthMaintenance$2520 per monthMaid service$33 per roomOther costs$63 per rooma/ Determine the inn’s break-even point in number of rented rooms per month.b/Determine the inn’s break-even point in dollars.

Break even point is the point at which the total costs will be equal to the total sales. At this…

Answered: The Sandhill Acres Inn is trying to…

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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The Sandhill Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rent at $120 a night. Operating costs are as follows:

Salaries	$5400 per month
Utilities	$1300 per month
Depreciation	$1100 per month
Maintenance	$2520 per month
Maid service	$33 per room
Other costs	$63 per room

a/ Determine the inn’s break-even point in number of rented rooms per month.

b/Determine the inn’s break-even point in dollars.

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