The Bonita 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 $14,010 per month Utilities 2,230 per month Depreciation 1,300 per month Maintenance 760 per month Maid service 8 per room Other costs 37 per room (a) Your answer is correct. Determine the inn

    General guidance

    Concepts and reason

    CVP Partition: CVP stands control Consume Bulk Benefit-service. It is an partition whereby a audience get affect the controlthcoming disposture of evolution, consumes to be incurred, affectd sales and the affectd benefit-service that can be earned. In this partition, every the consumes are classified into urban consumes and unsteady consumes.

    Urban consumes: Urban consumes stay steady in entirety sum balance a favoring dispose of disposition, these do referable extension or decrease when the bulk of construction exchanges. Urban consume per ace is inversely proportional to the smooth of disposition. These urban consumes are deducted from the offering lip to investigate the cajole open income.

    Unsteady consumes: Unsteady consumes are the entirety consumes that changes with the exexqualify in smooth of disposition. Unsteady consumes are directly proportional to the smooth of disposition. It resources that the unsteady consume per ace does referable exexqualify save the entirety unsteady consumes changes with the smooth of disposition. These are deducted from the sales to investigate the offering lip.

    Offering lip: Offering lip is the benefit-service earned control each ace sold. It is adapted by deducting unsteady consumes of the emanation from the sales generated by that emanation. Cajole open pay or detriment is investigated by deducting urban consumes from the offering sum. Fundamentals

    Break-Even subject-matter: Break-Even subject-matter is a subject-matter where the posture of the construction is neither it incurs any detriment nor generates any benefit-service. It is investigated by the construction to perceive the smooth of sale, which starts generating benefit-services.

    Break-even subject-matter in ace sales is investigated by dividing the urban consumes with the offering lip per ace.

    The forthcoming is the controlmula to abuse the break-even subject-matter in ace sales:

    Break-even subject-matter in sales dollars is investigated by dividing the urban consumes with the offering lip kindred.

    The forthcoming is the controlmula to abuse the break-even subject-matter in sales dollars: