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Homework answers / question archive / Exercise 5-9 (Video) The Carla Vista Acres Inn is trying to determine its break-even point during its off-peak season

Exercise 5-9 (Video) The Carla Vista Acres Inn is trying to determine its break-even point during its off-peak season

Accounting

Exercise 5-9 (Video)

The Carla Vista Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $40 a night. Operating costs are as follows:
 
Salaries   $5,000  per month
Utilities   $1,100  per month
Depreciation   $1,200  per month
Maintenance   $780  per month
Maid service   $7  per room
Other costs   $13  per room

 

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

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