What is monthly margin of safety in dollars

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Reference no: EM13129896

The San Marcos Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at $50 a night. Operating costs are as follows.
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

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

Reference no: EM13129896

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