Help I System Announcements NEXT CALCULATOR PRINTER VERSIONBACK Exercise 18-9 (P

Question

Help I System Announcements NEXT CALCULATOR PRINTER VERSIONBACK Exercise 18-9 (Part Level Submission) its break-even point during its off-peak season. The inn has 50 rooms that it rents at $ 145 a night. Operating costs are as follows. Salaries Utilities Depreciation Maintenance Maid service Other costs $ 5,900 per month $ 1,400 per month $ 1,100 per month $ 4,070 per month $ 39 per room $ 77 per room Determine the inn's break-even point in number of rented rooms per month. Break-even point Click if you would like to Show Work for this question: Open Show Work rooms

Explanation / Answer

Fixed cost = salary+utilities+dep.+maintenance

= 5900+1400+1100+4070

= 12470

contribution margin per room = revenue-variable cost

= 145-39-77

= 29

BEP = FC/contribution per room

= 12470/29

= 430 rooms

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