charge is $ 50 per person for one nights lodging and a full breakfast in the morning. The retired couple who own and manage the Inn estimate that the variable expense per person is $ 20. This includes such expenses as food, maid service and utilities. The Inns fixed expenses total $ 42,000 per year. The Inn can accommodate 10 guests each night.

Required: Compute the following

1. Contribution Margin per unit of service

2. Contribution Margin Ratio

3. Annual Break-even point in units of service in dollars of service revenue

4. The number of service required to earn a target net profit of $ 60,000 for the year (ignore income taxes)