The Soma Inn is trying to determine its break-even point. The inn has 75 rooms...
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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
$10,600
per month
Utilities
2,600
per month
Depreciation
1,400
per month
Maintenance
700
per month
Maid service
7
per room
Other costs
31
per room
Correct answer iconYour answer is correct.
Determine the inns break-even point in (1) number of rented rooms per month and (2) dollars.
1.
Break-even point in rooms
2.
Break-even point
$
eTextbook and Media
Partially correct answer iconYour answer is partially correct.
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? (Round ratio to 0 decimal places, e.g. 10.)
1.
Margin of safety
$
2.
Margin of safety ratio
%
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