E5-9 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
Instructions
Determine the inn’s break-even point in (a) number of rented rooms per month and (b) dollars
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