E5-9 The Green Acres Inn is trying to determine its break-even point. The inn has 50 rooms that it rents at $60.00 a night. Operating costs are as follows.
|
Salaries
|
$6,200
|
per month
|
|
Utilities
|
1,100
|
per month
|
|
Depreciation
|
1,000
|
per month
|
|
Maintenance
|
100
|
per month
|
|
Maid service
|
11
|
per room
|
|
Other costs
|
28
|
per room
|
Instructions
(1) Determine the inn's break-even point in number of rented rooms per month.
(2) Determine the inn's break-even point in dollars.