E$6-1$ Compute break$-$even point and margin of safety 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? NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a $"?".$ After you have completed E$6-1,$ consider the following additional questions. $1.$ Assume that the rental rate per room changed to $$65$ per night. Recalculate break$-$even point in units and dollars. Round CM ratio to one decimal point. $2.$ If the inn plans to rent $60$ rooms average per day at the new rate of $$65$ per night, recalculate the margin of safety in dollars and the margin of safety ratio.E$6\mathrm{.}1$ Compute break$-$even point and margin of safety

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.

Instructions

a$.$ Determine the inn's break$-$even point in $(1)$ number of rented rooms per month and $(2)$

sales 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?

NOTE: Enter a formula, a cell reference, or a value $($if you are unable to reference a cell$),$

into the yellow shaded input cells.

a$.$

$(1)$

Breakeven point in rooms

Rental per room

Variable cost per room

Contribution margin per room

Fixed costs

Contribution margin per room

Break$-$even point in rooms

$(2)$ Break$-$even boint in dollars

Contribution margin per room

Rental per room

Contribution margin ratio

Break$-$even point in rooms

Rental per room

Break$-$even point in dollars

Fixed cost

Contribution margin ratio

Break$-$even point in dollars

b$.(1)$ Marain of safetv in dollars

Expected rental revenues

Break$-$even sales

Margin of safety in dollars

$(2)$ Marain of safety ratio

Margin of safety in dollars

Expected rental revenues

Margin of safety ratio