E Compute breakeven point in sales units and in sales dollars
The Palmer Acres Inn is trying to determine its breakeven point during its offpeak season. The inn
has rooms that it rents at $ a night. Operating costs are as follows.
Instructions
Determine the inn's breakeven point in a number of rented rooms per month and b sales dollars.
NOTE: Enter a formula, a cell reference, or a value if you are unable to reference a cell into the
yellow shaded input cells.
a Contribution margin per room
Rent per room
Variable cost per room
Contribution margin per room
Contribution margin ratio
Contribution margin per room
Rent per room
Contribution margin ratio
Fixed costs
Breakeven point in rooms
Fixed costs
Contribution margin per room
Breakeven point in rooms
b Breakeven point in dollars
Breakeven point in rooms
Rent per room
Breakeven point in dollars
OR
Fixed costs
Contribution margin ratio
Breakeven point in dollars
When you have completed E respond to the additional question, on the E Add
Ques worksheet.
