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 (a) number of rented rooms per month and (b) dollars.