Acc349 Cost Accounting: E5-9 The Lake Shore Inn is trying to determine its break-even point
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.