Q1- The ABC Inn is trying to determine its break-even point. The inn has 70 rooms that are rented at $60 a night. Operating costs are as follows.

Salaries	$8,000	per month		Maintenance	$900	per month
Utilities	2,000	per month		Maid service	7	per room
Depreciation	1,000	per month		Other costs	35	per room

Instructions:

(a)(1) Determine the inn's break-even point in number of rented rooms per month.

(b)(1) If the inn plans on renting an average of 50 rooms per day (assuming a 30 -day month), what is the monthly margin of safety in dollars?

Instructions:

(a)(1) Determine the inn's break-even point in number of rented rooms per month.

(a)(2) Determine the inn's break-even point in dollars.