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E18.9 The Palmer Acres Inn is trying to determine its break-even point during season. The inn has 50 rooms that it rents at $60 a night. Operating costs are as break-even point during its off-peak Salaries Utilities Depreciation Maintenance Maid service Other costs $5,900 per month $1,100 per month $1,000 per month $100 per month $14 per room $28 per room Instructions Determine the inn's break-even point in (a) number of rented rooms per month and (b) dollars. E18-10 In the month of March, Style Salon services 560 clients at an average price of $120. During the month, fixed costs were $21,024 and variable costs were 60% of sales. Instructions (a) Determine the contribution margin in dollars, per unit, and as a ratio. (b) Using the contribution margin technique, compute the break-even point in dollars and in units. E18.11 Spencer Kars provides shuttle service between four hotels near a medical center and an international airport, Spencer Kars uses two 10-passenger vans to offer 12 round trips per day. A recent month's activity in the form of a cost volume profit income state. ment is shown below. $36,000 $ 5,040 3.100 860 Fare revenues (1,500 fares) Variable costs Fuel Tolls and parking Maintenance Contribution margin Fixed costs Salaries Depreciation Insurance Net income 9,000 27,000 15,700 1,300 1,000 18,000 $ 9,000 Instructions (a) Calculate the break-even point in (1) dollars and (2) number of fares. (b) Without calculations, determine the contribution margin at the break-even pint of $350,000 based on a selling ing price and the variable E18-12 In 2016, Manhoff Company had a break-even point of $350,000 bas. price of $5 per unit and fixed costs of $112.000. In 2017, the selling price and costs per unit did not change, but the break-even point increased to $420.000 Instructions

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