Homework Help for accounting?
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
Determine the inn's break-even point in (1) number of rented rooms per month and (2) dollars.
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 and (2) the margin of safety ratio? (Round margin of safety ratio to 1 decimal place, i.e. 25.3.)
Determine the inn's break-even point in (1) number of rented rooms per month and (2) dollars.
CM $ and CM %:
SP $50 = 1.0
VC $38 = .76
FC $12 = .24
BE Dollars: $12,000/.24 = $50,000
BE Rooms: $50,000/$50 = 1,000
1,000 * $50 = $50,000
1,000 * $38 = 38,000
1,000 & $12 = 12,000
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 and (2) the margin of safety ratio? (Round margin of safety ratio to 1 decimal place, i.e. 25.3.)
Budgeted sales = 50 rooms * 30-day * $50 = $75,000
Less: Break even sales $12,000/.24 = $50,000
Margin of safety in dollars = $25,000
Margin of safety in $/Break even sales = Margin of safety ratio
$25,000/$50,000 = .5
Shepard Fairey "Obey the Giant" @ Piazza San Marco Venezia 30-05-09 by Strifu
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