Break-even point $ eTextbook and Media If the inn plans on renting 25 rooms per day (assuming a 30-day month), what is the monthly margin of safety in dollars and the margin of safety ratio? Monthly margin of safety $ Margin of safety ratio %decreases by 20%, prepare a variable cost income statement for each company; ' -_ ' ea. ~45 parentheses cg. (45).) Using the margin of safety ratio, determine which alternative could sustain the greater decline in sales before operating at a loss. (Round margin of safety ratio to 2 decimal places, e.g. 15.25%.) Margin of Safety Ratio K Manual % Computerized % could sustain the greater decline in sales before operating at a loss.The Richibouctou Inn is trying to determine its break-even point. The inn has 74 rooms available that are rented at $40 a night. Operating costs are as follows: Salaries $5,690 per month Maintenance $410 per month Utilities $1,980 per month Housekeeping service $5 per room Depreciation $1,040 per month Other costs $19 per room Determine the inn's break-even point in the number of rented rooms per month and dollars. Break-even point rooms Break-even point $The following CVP income statements are available for Oldham Company and Newton Company: Oldham Company Newton Company Sales revenue $435,000 $435,000 Variable costs 261,000 87,000 K Contribution margin 174,000 348,000 Fixed costs 124,000 298,000 Operating income $50,000 $50,000 Calculate the break-even point in dollars and the margin of safety ratio for each company. (Round break-even point to the nearest whole dollar, e.g. 5,275 and margin of safety ratio to 2 decimal places, e.g. 15.25%.) Oldham Company Newton Company Break-even point $ Margin of safety ratio o %Jagswear Inc. earned operating income of $91,000 during 2020. The company wants to earn operating income of $155,000 during 2020. Its fixed costs are expected to be $57,550, and variable costs are expected to be 25% of sales. Determine the required sales to meet the target operating income during 2020. Required sales $ e Textbook and Media Question Part Score --/1 Fill in the dollar amounts for the summary income statement for 2020 below based on your answer to part a. Sales revenue $ Variable costs\fAssuming that sales revenue increases by 20%, prepare a variable cost income statement for each company. Oldham Newton Company Company $ $ 69 $Determine the degree of operating leverage for each alternative. (Round answer to 2 decimal places, e.g. 15.25.) Operating leverage Manual System Computerized System K eTextbook and Media Question Part Score --/2 Calculate which alternative would produce the higher operating income if sales increased by $114,000. would produce a higher operating income.Imagen Arquitectonica of Tijuana, Mexico, is contemplating a major change in its cost structure. Currently, all of its drafting work is performed by skilled draftspersons. Alfredo Ayala, Imagen's owner, is considering replacing the draftspersons with a computerized drafting system. However, before making the change, Alfredo would like to know its consequences, since the volume of business varies significantly from year to year. Shown below are CVP income statements for each alternative: Manual System Computerized System Sales $1,140,000 $1,140,000 Variable costs 912,000 684,000 Contribution margin 228,000 456,000 Fixed costs 114,000 342,000 Operating income $114,000 $114,000Fill in the dollar amounts for the summary income statement for 2020 below based on your answer to part a. Sales revenue $ Variable costs Contribution margin Fixed costs Operating income $