QUESTION 11 Jane Botosan operates a bed and breakfast hotel in a resort area near Lake Michigan. Following are the costs of running the bed and breakfast: Depreciation $40,000 per year Maintenance person salary S30,000 per year Cleaning person salary $20,000 per year Real estate taxes $15,000 per year Laundry/cleaning cost SI5 per person per night Cost of food S15 per person per night The rooms rent at an average price of S60 per person per night including breakfast and laundry/cleaning service. Required: (a) Determine the number of rentals (number of person nights) and the sales revenue Jane needs to break even using the contribution margin technique. (2 points) (b) If the current level of rentals is 4,000, by what percentage can rentals decrease before Jane has to worry about having a net loss? (1 point) (c) Jane is considering upgrading the breakfast service to attract more business and increase prices. This will cost an additional S3 for food costs per person per night. Jane feels she can increase the room rate to 575 per person per night. Determine the number of rentals and the sales revenue Jane needs to break even if the changes are made. (2 points)