1. The Gibco Inn is trying to determine its break-even point. The inn has 74 rooms available that are rented at $85 a night. Operating costs are as follows:

Salaries $14,000/month

Utilities $2,200/month

Depreciation $1,000/month

Maintenance $550/month

Housekeeping Service: $22 per room

Other Costs: $4 per room

a) What is the unit contribution margin per room?

b) Determine the break-even point in number of

(1) rented rooms /month

(2) sales dollars/month