Reference no: EM132502388

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$6,100 per month

Utilities 2,100 per month

Depreciation 1,500 per month

Maintenance 800 per month

Maid service 8 per room

Other costs 34 per room

Question 1: Determine the inn's break-even point in (1) number of rented rooms per month and (2) dollars.

1.Break-even point in rooms

2.Break-even point $------per month.

Question 2: 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%.)

Margin of Safety
Margin of safety ratio