Question

The soma inn is trying to determine its break-even point. the inn has 75 rooms that are rented at $56 a night. operating costs are as follows. salaries $10,100 per month utilities 2,900 per month depreciation 1,500 per month maintenance 800 per month maid service 7 per room other costs 31 per room

Answer 1

You need to multiply the cost of each room by the number of rooms to learn the daily profits. Then you have to multiply the costs of all of the expenses to find out which is greater, the expenses or the profits. If the expenses are bigger you need the difference.