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Dorothy Botosan operates a bed and breakfast hotel in a resort area near Lake Michigan. Depreciation on the hotel is $70,000 per year. Dorothy employs a maintenance person at an annual salary of $51,000 and a cleaning person at an annual salary of $34,000. Real estate taxes are $20,000 per year. The rooms rent at an average price of $70.00 per person per night including breakfast. Other costs are laundry and cleaning service at a cost of $20.00 per person per night and the cost of food, which is $15.00 per person per night. Determine the quantity of rentals and the sales revenue Dorothy needs to break even using the contribution margin technique. Break-even quantity of rentals eTextbook and Media If the current level of rentals is 6,500 , by what percentage can rentals decrease before Dorothy has to worry about having a net loss? (Round percentages to 0 decimal places, e.8. 52\%.) Margin of safety If the current level of rentals is 6,500 , by what percentage can rentals decrease before Dorothy has to worry about having a net loss? (Round percentages to 0 decimal places, e.g. 52\%.) Margin of safety Dorothy is considering upgrading the breakfast service to attract more business and increase prices. This will cost an additional $13 for food costs per person per night. She feels she can increase the room rate to $98.00 per person per night. Determine the quantity of rentals and the sales revenue Dorothy needs to break even if the changes are made. (Round answers to 0 decimal places, e.g. 5.275.) Break-even number of rentals Break-even sales

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