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E18.9 Compute break-even point in sales units and in sales dollars The Palmer...

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Accounting

E18.9 Compute break-even point in sales units and in sales dollars
The Palmer Acres Inn is trying to determine its break-even point during its off-peak season. The inn
has 50 rooms that it rents at $60 a night. Operating costs are as follows.
Instructions
Determine the inn's break-even point in (a) number of rented rooms per month and (b) sales dollars.
NOTE: Enter a formula, a cell reference, or a value (if you are unable to reference a cell), into the
yellow shaded input cells.
a. Contribution margin per room
Rent per room
Variable cost per room
Contribution margin per room
Contribution margin ratio
Contribution margin per room
Rent per room
Contribution margin ratio
Fixed costs
Break-even point in rooms
Fixed costs
Contribution margin per room
Break-even point in rooms
b. Break-even point in dollars
Break-even point in rooms
Rent per room
Break-even point in dollars
OR
Fixed costs
Contribution margin ratio
Break-even point in dollars
When you have completed E18.9, respond to the additional question, on the E18.9 Add
Ques worksheet.
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