The Blue Spruce Acres Inn is trying to determine its break-even point during its off-peak...
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Accounting
The Blue Spruce Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $55 a night. Operating costs are as follows:
Salaries $6,600 per month
Utilities $1,100 per month
Depreciation $1,100 per month
Maintenance $220 per month
Maid service $11 per room
Other costs $22 per room
-Determine the inns break-even point in number of rented rooms per month.
-Determine the inns break-even point in dollars.
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