The Green Acres Inn is trying to determine its break-even point. The inn has 50 rooms that it rents at $75a night. Operating costs are as follows.
| Salaries |
|
$8,547 |
per month |
| Utilities |
|
$1,832 |
per month |
| Depreciation |
|
$1,221 |
per month |
| Maintenance |
|
$610 |
per month |
| Maid service |
|
$9 |
per room |
| Other costs |
|
$36 |
per room |
Determine the inn's break-even point in (1) number of rented rooms per month and (2) dollars.
(1) Break-even point rooms
(2) Break-even point $