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The Richibouctou Inn is trying to determine its break-even point. The inn has 77 rooms available that are rented at $54 a night. Operating
The Richibouctou Inn is trying to determine its break-even point. The inn has 77 rooms available that are rented at $54 a night. Operating costs are as follows: Salaries Utilities Depreciation $6,220 per month 2,110 per month 2,010 per month Determine the following for the inn: Maintenance Housekeeping service Other costs Determine the inn's break-even point in the number of rented rooms per month and dollars. Break-even point Break-even point Monthly margin of safety Margin of safety ratio rooms $460 per month 7 per room 20 per room If the inn plans on renting 26 rooms per day (assuming a 30-day month), what is the monthly margin of safety in dollars and the margin of safety ratio? (Round margin of safety ratio to 2 decimal places, e.g. 15.75%.) %
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