E5-9 The
Green Acres Inn
E5-9-Compute break-even point. - Managerial Accounting, 6th Edition, by Weygandt, Kieso, and Kimmel
E5-9 The
Green Acres Inn is trying to determine its break-even point. The inn has 50 rooms
that it rents at $60.00 a night.
Operating costs are as follows.
|
Salaries
|
$6,200
|
per month
|
|
Utilities
|
1,100
|
per month
|
|
Depreciation
|
1,000
|
per month
|
|
Maintenance
|
100
|
per month
|
|
Maid service
|
11
|
per room
|
|
Other costs
|
28
|
per room
|
Instructions
(1)
Determine the inn’s break-even point in number of rented rooms per month.
(2) Determine
the inn’s break-even point in dollars.
TUTORIAL
PREVIEW
|
Contribution margin per
room:
|
||
|
Room Rent
|
$60
|
|
|
Maid Service
|
$11
|
|
|
Other costs
|
$28
|
39
|
File name: E5-9 The Green Acres.xls File type: .doc PRICE: $4
