Question: Please show calculations for each box (not in excel) Compute break-even point and margin of safety 2 The ABC Inn is trying to determine its
Compute break-even point and margin of safety 2 The ABC Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at $125 3 a night. Operating costs are as follows 4 Salaries $10,600 per month 2,400 per month Utilities 6 Depreciation 1,500 per month Maintenance Maid service Other costs 800 per month 5 per room 45 per room 10 1 Instructions (a) Determine the inn's break-even point in (1) number of rented rooms per month and 13 2) dollars. 4 (a(1) Break even 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 (ax2) Break-even point 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 AND Fixed cost contribution marain ratio Break-even point in rooms Rental per room Break-even point in dollars AND Fixed cost contribution margin ratio Break-even point in dollars 4 5 6 38 39 40 (b) If the inn plans on renting an average of 50 rooms per day (assuming a 30-day month) 43 what is (1) the monthly margin of safety in dollars and (2) the margin of safety ratio? 4 5 (b)(1) Margin of safety in dollars 46 47 48 Actual sales Break-even Sales Margin of safety in dollars 0(b(2) Margin of safety ratio 52 53 Margin of safety in dollars Actual sales Margin of safety ratic
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