The Richibouctou Inn is trying to determine its break-even point. The inn has 75 rooms available that are rented at $50 a night. Operating costs are as follows:

Instructions
(a) Determine the inn's break-even point in (1) the number of rented rooms per month and (2) dollars.
(b) If the inn plans on renting 30 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?

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Salaries Utilities Depreciation $10,000 per month 2,000 per month 1,000 per month Maintenance Housekeeping service Other costs $500 per month 5 per room 25 per room