Compute break-even point The Palmer Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $60 a night. Operating costs are as follows. Salaries $5,900 per month Utilities $1,100 per month Depreciation $1,000 per month Maintenance $100 per month Maid Service $14 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. NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" .
(a) Determine the inn's break-even point in number of rented rooms per month Contribution margin per room Rent per room Value Variable cost per room ? Contribution margin per room ? Contribution margin ratio Contribution margin per room Value Rent per room Value Contribution margin ratio ? Fixed costs ? Break-even point in rooms Fixed costs Value Contribution margin per room Value Break-even point in rooms ?
(b) Determine the inn's break-even point in dollars. Break-even point in dollars Break-even point in rooms Value Rent per room Value Break-even point in dollars ? OR Fixed costs Value Contribution margin ratio Value Break-even point in dollars ? When you have completed E5-9, consider the following additional question. 1. Assume that total fixed costs changed to $8,750 per month and the rental rate per room for a night changed to $65. Show impact of these changes have on the calculations.