$($answer in a table format$)$

Chuck Justice operates a Competition Go$-$Kart racing track on his $40-$acre ranch in

Monterey County California, just a short distance from world famous Laguna Seca.

The facility includes a $1\mathrm{.}5-$mile track, $60$ pitstop work stations each with a covered

shop$/$work area, piped in pressurized air, deep sinks with running water and

cleaning solvent, $110/220$ electrical service, and benches for working on$,$ tuning

up$,$ changing engines and tires, etc. on the Go$-$Karts.

Fixed Operating Costs are as follows:

Depreciation on the facilities $$3,600$ per

year. Real estate taxes $$1,200$ per year. Utilities average $$320$ per month. General

track and facility maintenance averages $$105$ per month. Chuck$$s son is employed

to operate and maintain the facilities at an annual salary of $$27,600.$

Variable Operating Costs are as follows:

Engineering students from Monterrey

Peninsula College works as interns. One engineering student can be assigned to as

many as $6$ pitstop workstations to troubleshoot and provide ideas regarding

sprocket ratios, engine issues, track temperature$/$tire pressure, etc. As an intern,

They are paid $$21$ per workstation per day.

The pitstop workstations rent for $$35$ per Go$-$Kart owner per day.

Instructions

$($a$)$

Determine the annual number of pitstop work station rentals and revenue

Chuck needs to break even using the contribution margin technique.

$($b$)$

If the current annual number of pitstop workstation rentals is $6,915,$

calculate the $$margin of safety$.$