The Bonita Inn is trying to determine its break-even point. The inn has 75 rooms

Question

The Bonita Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at $52 a night. Operating costs are as follows.

Salaries $9,390 per month Utilities 1,780 per month Depreciation 1,400 per month Maintenance 820 per month Maid service 7 per room Other costs 32 per room The Bonita Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at $52 a night. Operating costs are as follows.

Salaries $9,390 per month Utilities 1,780 per month Depreciation 1,400 per month Maintenance 820 per month Maid service 7 per room Other costs 32 per room Determine the inn Determine the inn The Bonita Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at $52 a night. Operating costs are as follows.

Salaries $9,390 per month Utilities 1,780 per month Depreciation 1,400 per month Maintenance 820 per month Maid service 7 per room Other costs 32 per room The Bonita Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at $52 a night. Operating costs are as follows. Determine the inn's break-even point in (1) number of rented rooms per month and (2) dollars.

Explanation / Answer

for break even point

revenue = cost

52x=9390+1780+1400+820+39x

x= 1030

break even poin in rooms per month = 1030

in $ = 1030*52 = $53560

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