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The Soma Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at $56a night. Operating costs are as
The Soma Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at $56a night. Operating costs are as follows.
Salaries$6,100per month
Utilities2,100per month
Depreciation1,500per month
Maintenance800per month
Maid service8per room
Other costs34per room
If the inn plans on renting an average of 50 rooms per day (assuming a 30-day month), what is (1) the monthly margin of safety in dollars and (2) the margin of safety ratio?(Round ratio to 0 decimal places, e.g. 10%.)
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