Posted: June 17th, 2021

San marcos inn_breakeven analysis | Accounting homework help

The San Marcos Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at $50 a night. Operating costs are as follows.
Salaries ………………………..$8,500 per month
Utilities ……………………….. 2,000 per month
Depreciation ………………….. 1,000 per month
Maintenance ………………….. 500 per month
Maid service ………………….. 5 per room
Other costs …………………… 33 per room

Instructions
(a) Determine the inn’s break-even point in 
(1) Number of rented rooms per month 
(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 
(2) The margin of safety ratio?

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