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E6.23 (LO 2, 3) Service Excel The Richibouctou Inn is trying to determine its break-even point. The inn has 75 rooms available that are rented
E6.23 (LO 2, 3) Service Excel The Richibouctou Inn is trying to determine its break-even point. The inn has 75 rooms available that are rented at $50 a night. Operating costs are as follows: Salaries $10,000 per Maintenance $500 per month month Utilities $2,000 per Housekeeping $5 per room month service Depreciation $1,000 per Other costs $25 per month room Instructions a. Determine the inn's break-even point in (1) the number of rented rooms per month and (2) dollars. b. If the inn plans on renting 30 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? Calculate operating income under different alternatives
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