The Sandhill Inn is trying to determine its break-even point. The inn has 70 rooms available that are rented at $ 50 a night. Operating costs are as follows:

Salaries		$ 8,030	per month		Maintenance		$ 420	per month
Utilities		$ 1,840	per month		Housekeeping service		$ 6	per room
Depreciation		$ 2,190	per month		Other costs		$ 24	per room

(a)

Correct answer icon

Your answer is correct.

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

Break-even point		enter a number of rooms	rooms
Break-even point		$ enter the break-even point in dollars

(b)

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?

Monthly margin of safety		$ enter the monthly margin of safety in dollars
Margin of safety ratio		enter the margin of safety ratio in percentages	%