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Salaries .............................$8,500 per monthUtilities ............................. 2,000 per monthDepreciation ....................... 1,000 per monthMaintenance ....................... 500 per monthMaid service ....................... 5 per roomOther 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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