(Answered) Salaries 8500 per monthutilities 2000 per

Accounting

Salaries .............................$8,500 per month
Utilities ............................. 2,000 per month
Depreciation ....................... 1,000 per month
Maintenance ....................... 500 per month
Maid service ....................... 5 per room
Other costs ........................ 33 per room

Instructions

(a) Determine the inn's break-even point in

(1) Number of rented rooms per month

(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

(2) The margin of safety ratio?

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