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What is the monthly margin of safety in dollars

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Reference no: EM132664282

The Soma Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at $56 a night. Operating costs are as follows.

Salaries$6,100 per month
Utilities2,100 per month
Depreciation1,500 per month
Maintenance800 per month
Maid service8 per room
Other costs34 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: EM132664282

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