The Richibouctou Inn is trying to determine its break-even point. The inn has 70 rooms available that are rented at $40 a night. Operating costs are as follows:

Salaries		$5,506	per month		Maintenance		$400	per month
Utilities		$2,010	per month		Housekeeping service		$4	per room
Depreciation		$1,480	per month		Other costs		$18	per room

a) Determine the inns break-even point in the number of rented rooms per month and dollars.

b) If the inn plans on renting 29 rooms per day (assuming a 30-day month), what is the monthly margin of safety in dollars and the margin of safety ratio?