The Crane Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $130 night. Operating costs are as follows: Salaries Property tax Depreciation (straight-line) Maintenance Maid service Other costs $5,600 per month $1,100 per month $1,200 per month $290 per month $35 per room $69 per room

The Crane Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $130 night. Operating costs are as follows: Salaries Property tax Depreciation (straight-line) Maintenance Maid service Other costs $5,600 per month $1,100 per month $1,200 per month $290 per month $35 per room $69 per room

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 5MCQ

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(a) Calculate and determine the break-even points (in sales dollars and units) for each product type, assuming a constant sales mix. (b) Explain by showing relevant computations, how your answer to part (a) would change if the constant sales mix assumption is lifted.
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What are the formulas to calculate "sales" and "break-even sales" ? Plz do it asap thanks.