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San Marcos Inn_Breakeven analysis




Question;The San Marcos;Inn is trying to determine its break-even point. The inn has 75 rooms that;are rented at $50 a night. Operating costs are as follows.;Salaries ?????????..$8,500 per month;Utilities ?????????.. 2,000 per month;Depreciation ???????.. 1,000 per month;Maintenance ???????.. 500 per month;Maid service ???????.. 5 per room;Other costs ???????? 33 per room;Instructions;(a) Determine the inn?s break-even point in;(1) Number of rented rooms per month;(2) Dollars.;(b) If the inn plans on renting an average of 50 rooms per day (assuming a;30-day month), what is;(1) The monthly margin of safety in dollars;(2) The margin of safety ratio?


Paper#37537 | Written in 18-Jul-2015

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