E$6\mathrm{.}1($LO $1),$ AP Service 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?