The Soma Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at $60 a night. Operating costs are as follows.

Salaries

$10,850

per month

Utilities

2,900

per month

Depreciation

1,600

per month

Maintenance

850

per month

Maid service

8

per room

Other costs

34

per room The Soma Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at $60 a night. Operating costs are as follows.

Salaries		$10,850	per month
Utilities		2,900	per month
Depreciation		1,600	per month
Maintenance		850	per month
Maid service		8	per room
Other costs		34	per room

A. Determine the inns break-even point in (1) number of rented rooms per month and (2) dollars.

B. 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%.)