Question - The Palmer Acres Inn is trying to determine its break-even point during its off-peak season. The Inn has 50 rooms that it rents at $60 a night. Operating costs are as follows:
Salaries $5,900 per month
Utilities $1,100 per month
Depreciation $1,000 per month
Maintenance $100 per room
Maid Service $14 per room
Other Costs $28 per room
Determine the Inn's break-even point in (a) number of rented rooms per month and (b) dollars.