Question

Exercise 18-09 The Carla Vista Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $40 a night. Operating costs are as follows: Salaries Utilities Depreciation Maintenance Mald service Other costs $5,000 per month $1,100 per month $1,200 per month $780 per month $7 per room $13 per room Determine the inn's break-even point in number of rented rooms per month. Break-even point rooms LINK TO TEXT LINK TO VIDEO Determine the inn's break-even point in dollars. Break-even point in $ Click if you would like to show Work for this question: Open Show Work

Answer 1

XI - Book1 - Microsoft Excel File Home Insert Page Layout Formulas Data Review View O x I AutoSum - * Cut E Copy Calibri 11 AA Wrap Text General H Fill Paste BIU А Merge & Center - % +.0 .00 .00.0 Insert Delete Format Format Painter Clear Conditional Format Cell Formatting as Table Styles Styles Sort & Find & Filter - Select Editing Clipboard Font Alignment Number Cells M18 A B С D E F H 1 J к L M N 0 P Q R 1 2 Let find contribution per unit first 3 4 5 Less: Rent per night Maid Service Other cost Contribution per unit $ 40.00 $ 7.00 $ 13.00 $ 20.00 6 Less: 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Break Even point = Fixed Costs (in number of rooms rented) Contribution per unit = Salarie + Utilities + Depreciation + Maintenance Contribution per unit = $5000 + $1100 + $1200 + $780 $20 = $ 8,080.00 $ 20.00 = 404 rooms O 21 Break even point in dollor sales = Break even point in number of rooms rented * Rent per room = 404 rooms *$40 per room = $8080 22 23 24 25 Sheet2 Sheet3 K™ Sheet1 Ready u 100% - + 11 Type here to search o е п a X la 4x ENG 08:27 23-09-2020

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