Question

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 $ 70 a night. operating costs are as follows. salaries $ 5,700 per month utilities $ 1,200 per month depreciation $ 1,000 per month maintenance $ 3,720 per month maid service $ 14 per room other costs $ 28 per room

Answer 1

They don't hit their break even point with all of the additional costs. They are still $11060 under the break even point at the end of the month