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Exercise 6-1 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 6-1 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 S11,150 per month 2,900 per month 1,300 per month per month 850 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 per month If the inn plans on renting an average of 50 rooms per day assuming a 30-day month), 1. Margin of safety 2. Margin of safety ratio Click if you would like to Show Work for this question: hat is 1) the monthly margin of safety in dollars and 2) the margin of safety ratio? Round ratio to O decima,places, eg, 10%.) Question Attempts: 0 of 15 used
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