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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
Unit variable costs

$ 400
$ 280