Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Soma Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at $52 a night. Operating costs are

image text in transcribed

The Soma Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at $52 a night. Operating costs are as follows. Salaries $9,000 per month Utilities Depreciation 1,500 per month Maintenance 900 per month Mald service Other costs 2,100 per month 6 per room 28 per room Your answer is partially correct Determine the inn's break-even point in (1) number of rented rooms per month and (2) dollars 1. Break-even point in rooms 750 2. Break-even point 38,571 eTextbook and Media Your answer is correct renting an average of 50 rooms per day lassuming a 30 day month), what is (1) the monthly margin of safety in dollars and (2) the margin of safety ratio? (Round ratio to O decimal places, eg. 10.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essential Audit And Assurance 2022

Authors: Nick Blackwell, Emile Woolf International

1st Edition

1848439326, 978-1848439320

More Books

Students also viewed these Accounting questions

Question

Explain how we calculate the expected time value.

Answered: 1 week ago

Question

=+(2.9) PUAK =EP(A) - EP(ANA,) k=1 i

Answered: 1 week ago