Margaret Botosan operates a bed and breakfast hotel in a resort area near Lake Michigan. Depreciation on the hotel is $70,224 per year. Margaret employs a maintenance person at an annual salary of $50,000 and a cleaning person at an annual salary of $33,000. Real estate taxes are $19,000 per year. The rooms rent at an average price of $69.00 per person per night including breakfast. Other costs are laundry and cleaning service at a cost of $19.12 per person per night and the cost of food, which is $14.00 per person per night. Determine the quantity of rentals and the sales revenue Margaret needs to break even using the contribution margin technique. Break-even quantity of rentals Break-even sales If the current level of rentals is 6,300, by what percentage can rentals decrease before Margaret has to worry about having a net loss? (Round percentages to 0 decimal places, e.g. 52%.) Margin of safety % Margaret is considering upgrading the breakfast service to attract more business and increase prices. This will cost an additional $12 for food costs per person per night. She feels she can increase the room rate to $95.00 per person per night. Determine the quantity of rentals and the sales revenue Margaret needs to break even if the changes are made. (Round answers to O decimal places, e.g. 5,275.) Break-even number of rentals Break-even sales $