The Soma Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at $60 a night. Operating costs are as follows.Salaries $10,600 per monthUtilities 2,400 per monthDepreciation 1,500 per monthMaintenance 800 per monthMaid service 8 per roomOther costs 34 per room(a) Determine the inn’s break-even point in (1) number of rented rooms per month and (2) dollars.1. Break-even point in rooms 2. Break-even point $ per month

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Determine the inn’s break-even point in (1) number of rented rooms per month and (2) dollars. 1. Break-even point in rooms 2. Break-even point $ per month

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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(a)

Determine the inn’s break-even point in (1) number of rented rooms per month and (2) dollars.

1.		Break-even point in rooms
2.		Break-even point		$	per month

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