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The Lake Shore Inn is trying to determine its break-even point.

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The Lake Shore Inn is trying to determine its break-even point. The inn has 50 rooms that it rents at $60a night. Operating cost are as follows;Salaries $7,200 per month;Utilities $1,500 per month;Depreciation $1,200 per month;Maintenance $300 per month;Maid service $8 per room;Other costs $28 per room;Instructions;Determine the inn?s break-even point in (1) number of rented rooms per month and (2) dollars.;Exercise 5-10;In the month of March, New Day Spa Services 570 clients at an average price of $120. During the month, fixed costs were $21,000 and variable costs were 65% of sales.;Instructions;(a) Determine the contribution margin in dollars, per unit, and as a ratio.;(b) Using the contribution margin techniques, compute the bread-even point in dollars and in units.

 

Paper#32869 | Written in 18-Jul-2015

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