Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the ricchiuto inn is trying to determine its break

The Ricchiuto Inn is trying to determine its break-even point. The inn has 75 rooms...

90.2K

Verified Solution

Question

Accounting

The Ricchiuto Inn is trying to determine its break-even point. The inn has 75 rooms available that are rented at $50 a night. Operating costs are as follows:

Salaries $10,000 per month

Maintenance $500 per month

Utilities 2,000 per month

Housekeeping service 5 per room

Depreciation 1,000 per month

Other costs 25 per room

required

a. Determine the inn's break-even point in (1) the number of rented rooms per month and

(2) dollars

. b. If the inn plans on renting 30 rooms per day (assuming a 30-day month), what is (1) the monthly margin of safety in dollars and

(2) the margin of safety ratio?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Deja Brew Coffee Manufacturing Corporation is expected to pay the following dividends over the next six...

Finance
Q

The temperature at a point (x, y, z) is given by T(x, y, z) = 100e−x2 − 3y2 − 7z2 where T...

Basic Math
Q

A major west coast city provides one of the most comprehensive emergency medical services in the...

Statistics
Q

3 Looking ahead Special right triangles are key to understanding the Unit Circle If the...

Geometry
Q

Using a sheet of graph paper, solve the following system of equations graphically. Be sure...

Basic Math
Q

In how many ways can a girl choose a two-piece outfit from 5 blouses and...

Basic Math
Q

Determine the surface area of the sides and roof in square feet and the volume...

Algebra
Q

Given: Cash flows for an investment. Required: EUAC at 5 % per year

Accounting
Q

You are saving for retirement. To live comfortably, you decide you will need to save...

Accounting
Q

Accountants are the traditional stewards of accounting information and are in-tune with the financial health...

Accounting
Q

during 2025. The company received cash for 20% of the sales and notes receivable for...

Accounting
Q

Rieb Incorporated has provided the following data for the month of September. There were no...

Accounting