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Question 1 The Soma Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at $52 a night. Operating
Question 1 The Soma 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 Utilities Depreciation Maintenance Maid service Other costs $8,800 per month 2,200 per month 1,600 per month 900 per month 6 per room 28 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 room:s 2. Break-even point 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? 1. Margin of safety 2. Margin of safety ratio
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