Bob Newhart operates a bed and breakfast hotel in Vermont. Depreciation on the hotel is $60,000 per year. Bob employs a maintenance person, George Utley, at an annual salary of $41,000 and a cleaning person, Stephanie Vanderkellen, at an annual salary of $24,000. Real estate taxes are $10,000 per year. The rooms rent at an average price of $60 per person per night including breakfast. Other costs are laundry and cleaning service at a cost of $10 per person per night and the cost of food which is $5 per person per night. Required: (a) Determine the number of rentals and the sales revenue Bob needs to break even using the contribution margin technique. (b) If the current level of rentals is 4,000, by what percentage can rentals decrease before Bob has to worry about having a net loss? (c) Bob is considering upgrading the breakfast service to attract more business and increase prices. This will cost an additional $3 for food costs per person per night. Bobs wife Joanna feels she can increase the room rate to $68 per person per night. Determine the number of rentals and the sales revenue Bob needs to break even if the changes are made.