Acc349 Cost Accounting
Week 3
E5-9
The Lake Shore Inn is trying to determine its break-even point. The inn has 50 rooms that it rents at $60 a night. Operating costs are as follows.
Salaries $7,200 per month
Utilities $1,500 per month
Depreciation $1,200 per month
Maintenance $300 per month
Maid service $8 per room
Other costs $28 per room
Instructions
Determine the inn’s break-even point in (1) number of rented rooms per month and (2) dollars.
