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Exercise 20 - 1 The Bonita Inn is trying to determine its break - even point. The inn has 75 rooms that are rented at
Exercise 20 - 1 The Bonita Inn is trying to determine its break - even point. The inn has 75 rooms that are rented at $52 a night. Operating costs are as follows. Salaries $11,170 per month Utilities 2,300 per month Depreciation 1,400 per month Maintenance 860 per month Maid service 7 per room Other costs 32 per room Determine the inn's break - even point in (1) number of rented rooms per month and (2) dollars. 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
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