The Ricchiuto Inn is trying to determine its break-even point. The inn has 75 rooms available that are rented at $50 a night. Operating costs are as follows:

Salaries $10,000 per month

Maintenance $500 per month

Utilities 2,000 per month

Housekeeping service 5 per room

Depreciation 1,000 per month

Other costs 25 per room

required

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

(2) dollars

. b. If the inn plans on renting 30 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?