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Green Acres Inn 6200

Price: $1.99

The Green Acres Inn is trying to determine its break-even point. The inn has 50
rooms that it rents at $60 a night. Operating costs are as follows.

Salaries  $6,200 per month 
Utilities  $1,100 per month 
Depreciation  $1,000 per month 
Maintenance  $100 per month 
Maid service  $11 per room 
Other costs  $28 per room 

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

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