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The Soma Inn is trying to determine its break-even point The inn has 75 rooms that are rented at $60 a night Operating costs are as follows Salaries

The Soma Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at $60 a night. Operating costs are as follows. Salaries............................10,600 per month Utilities..............................2,400 per month Depreciation........................1,500 per month Maintenance...........................800 per month Maid service..............................8 per room Other costs...............................34 per room Instructions (a) Determine the inn s break-even point in (1) number of rented rooms per month and (2) dollars. (b) 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?

Apr 10 2020 Read more Less More

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