B. Calculate the expected costs when production is 5,000 units.
E5-9
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.
Salaries $ 5,900 per month FIXED COST Utilities $ 1,100 per month FIXED COST Depreciation $ 1,000 per month
FIXED COST Maintenance $ 100 per month FIXED COST Maid service $ 14 per room VARIABLE Other costs $ 28 per room VARIABLE
Instructions: Determine the inn ' s break-even point in( a) number of rented rooms per month and( b) dollars.
E5-13
Billings Company has the following information available for September 2017.
Unit selling price of video game consoles $ 400