Question

Determine the inn's break-even point in (1) number of rented rooms per month and (2) dollars.?

1) The San Marcos Inn is trying to determine its break-even point. The inn has 50 rooms that are rented at $60 per night. Operating costs are as follows:
Salaries $7,342 per month
Utilities 1,573 per month
Depreciation 1,049 per month
Maintenance 524 per month
Maid Service 7.20 per room
Other Costs 28.80 per room


Determine the inn's break-even point in (1) number of rented rooms per month and (2) dollars.

1 year ago - 1 answers

Best Answer

Chosen by Asker

The fixed costs are $10,488 and of the $60 a night, $36 are associated expenses. Thus the $24 remaining dollars divided into the $10,488 is 437 room rentals/night and the dollar amount is $26,220.

1 year ago