Determine the inn’s break-even point in number of rented rooms per month

Determine the inn’s break-even point in number of rented rooms per month

Subject: Business    / Accounting
Question
E6-1 The Bonita Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at a night. Operating costs are as follows.
Salaries    $8,800     per month        Maintenance    $800     per month
Utilities    2,400    per month        Maid service    8    per room
Depreciation    1,500    per month        Other costs    37    per room

Instructions
(a)(1) Determine the inn’s break-even point in number of rented rooms per month.
(a)(2) Determine the inn’s break-even point in dollars.
(b)(1) If the inn plans on renting an average of rooms per day (assuming a -day month), what is the monthly margin of safety in dollars?
(b)(2) If the inn plans on renting an average of rooms per day (assuming a 30-day month), what is the margin of safety ratio?