The bonita inn is trying to determine its break-even point.

E6-1 The Bonita Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at a night. Operating costs are as follows.



per month




per month



per month


Maid service


per room



per month


Other costs


per room

Instructions(a)(1) Determine the inn’s break-even point in number of rented rooms per month.(a)(2) Determine the inn’s break-even point in dollars.(b)(1) If the inn plans on renting an average of           rooms per day           (assuming a -day month), what is the monthly margin of safety in dollars?(b)(2) If the inn plans on renting an average of           rooms per day (assuming a 30-day month), what is the margin of safety ratio?
TUTORIAL PREVIEW(a)(1) Determine the inn’s break-even point in number of rented rooms per month.


Contribution margin per room =


 –     (






Contribution margin per room =



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