The Bonita 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	$8,800 per month
Utilities	2,400 per month
Depreciation	1,500 per month
Maintenance	800 per month
Maid service	8 per room
Other costs	37 per room

Instructions

(a)	Determine the inn's break-even point in (1) number of rented rooms per month and (2) dollars.

(b)	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?