Karen Botosan operates a bed and breakfast hotel in a resort area near Lake Michigan. Depreciation on the hotel is $72,296 per year. Karen employs a maintenance person at an annual salary of $54,000 and a cleaning person at an annual salary of $37,000. Real estate taxes are $23,000 per year. The rooms rent at an average price of $73.00 per person per night including breakfast. Other costs are laundry and cleaning service at a cost of $22.88 per person per night and the cost of food, which is $18.00 per person per night. (a) Your answer is correct. Determine the quantity of rentals and the sales revenue Karen needs to break even using the contribution margin technique. Break-even quantity of rentals Break-even sales If the current level of rentals is 7,300 , by what percentage can rentals decrease before Karen has to worry about having a net loss? (Round percentages to 0 decimal places, eg. 52\%.) Margin of safety % Karen is considering upgrading the breakfast service to attract more business and increase prices. This will cost an additional $16 for food costs per person per night. She feels she can increase the room rate to $107.00 per person per night. Determine the quantity of rentals and the sales revenue Karen needs to break even if the changes are made. (Round answers to 0 decimal places, cg.5,275. Break-even number of rentals Break-even sales