The Green Acres Inn is trying to determine its break-even point. The inn has 50 rooms that it rents at $50 a night. Operating costs are as follows:
Salaries |
|
$5,642 |
per month |
Utilities |
|
$1,209 |
per month |
Depreciation |
|
$806 |
per month |
Maintenance |
|
$403 |
per month |
Maid service |
|
$6 |
per room |
Other costs |
|
$24 |
per room |
Determine the inn's break-even point in (1) number of rented rooms per month and (2) dollars.