What is the monthly margin of safety in dollars

Reference no: EM132720440

Question: 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

Utilities2,100 per month

Depreciation1,500 per month

Maintenance800 per month

Maid service8 per room

Other costs34 per room

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%.)

Reference no: EM132720440

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