The Richibouctou Inn is trying to determine its break-even point. The inn has70rooms available that are rented at $40a night. Operating costs are as follows:

Salaries

$5,506

per month

Maintenance

$400per month

Utilities$2,010per monthHousekeeping service$4per roomDepreciation

$1,480per month

Other costs

$18per room

Determine the inn's break-even point in the number of rented rooms per month and dollars.

Break-even point

roomsBreak-even point$

eTextbook and Media

If the inn plans on renting29rooms per day (assuming a 30-day month), what is the monthly margin of safety in dollars and the margin of safety ratio?

Monthly margin of safety

$Margin of safety ratio