Compute break-even point and margin of safety
The Motor Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at $100
a night. Operating costs are as follows.
	Salaries		$10,600 per month
	Utilities		2,400 per month
	Depreciation		1,500 per month
	Maintenance		800 per month
	Maid service		5 per room
	Other costs		45 per room
Instructions
(a)	Determine the inn's break-even point in (1) number of rented rooms per month and
	(2) dollars.
	(a)(1)	Break-even point in rooms
		Rental per room
		Variable cost per room
		Contribution margin per room
		Fixed costs
		Contribution margin per room
		Break-even point in rooms
	(a)(2)	Break-even point in dollars
		Contribution margin per room
		Rental per room
		Contribution margin ratio
		Break-even point in rooms
		Rental per room
		Break-even point in dollars
		OR
		Fixed cost
		contribution margin ratio
		Break-even point in dollars
(b)	If the inn plans on renting an average of 50 rooms per day (assuming a 30-day month),
	what is (1) the monthly margin of safety in dollars and (2) the margin of safety ratio?
	(b)(1)	Margin of safety in dollars
		Actual sales
		Break-even Sales
		Margin of safety in dollars
	(b)(2)	Margin of safety ratio
		Margin of safety in dollars
		Actual sales
		Margin of safety ratio