Question
The Crane Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at $52 a night. Operating costs
The Crane 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 $4,900 per month Utilities 2,500 per month Depreciation 1,500 per month Maintenance 850 per month Maid service 7 per room Other costs 32 per room 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? (Round ratio to O decimal places, e.g. 10%.) 1. Margin of safety $ 2. Margin of safety ratio do %
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