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The Soma Inn is trying to determine its break-even point. The inn has 75 rooms...

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Accounting

The Soma Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at $56 a night. Operating costs are as follows.

Salaries $10,000 per month
Utilities 2,100 per month
Depreciation 1,500 per month
Maintenance 800 per month
Maid service 7 per room
Other costs 31 per room

Determine the inns break-even point in (1) number of rented rooms per month and (2) dollars.

1. Break-even point in rooms

2. Break-even point

$

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? (Round ratio to 0 decimal places, e.g. 10.)

1. Margin of safety

$

2. Margin of safety ratio %

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