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 $10,600 per month

Utilities 2400 per month

Depreciation 1500 per month

Maintenance 800 oer month

Maid service 8 per room

Other service 34 per room

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

b.)If the Inn plans to renting an average of 50 rooms per day (assuming a 30-day onth), what is (1) the monthly margin of safety dollars and (2) the margin of safety ratio?