A hospitality operation has sales revenue of $462,000 with variable cost averaging 44%. Fixed costs are $188,000.

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A hospitality operation has sales revenue of $462,000 with variable cost averaging 44%. Fixed costs are $188,000. The owner wants a net income after tax of $50,400 based on a tax rate of 28%.

a. Calculate the total additional sales revenue needed to support the desired net income after tax.

b. Calculate the total sales revenue required to cover fixed costs, tax, and net income after tax.

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Hospitality Management Accounting

ISBN: 9780471687894

9th Edition

Authors: Martin G Jagels, Catherine E Ralston

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Question Posted: Jun 21, 2024 09:00 AM

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A hospitality operation has sales revenue of $462,000 with variable cost averaging 44%. Fixed costs are $188,000.

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Hospitality Management Accounting

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