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Exercise 19-1 The Soma Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at $60 a night. Operating
"Exercise 19-1 The Soma Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at $60 a night. Operating costs are as follows. Salaries Utilities Depreciation Maintenance Maid service Other costs $11,150 per month 2,900 per month 1,300 per month 850 per month 8 per room 34 per room Determine the inn's break-even point in (1) number of rented rooms per month and (2) dollars. 1. Break-even point in rooms 2. Break-even point 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 o0 decimal places, e.g. 10.) 1. Margin of safetys 2. Margin of safety ratio
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