1. (20 points) An owner invested $180,000 in a new family- style restaurant. They want an after-tax return on their investment of 12%. Cost estimates for the first year of business are as follows: Known costs Fixed wages expense $ 51,600 Rent expense* 36,000 Insurance expense* 4.800 Depreciation expense, Equip. 32,000 Income tax 9,000 Variable Costs Food cost, %40 of sales revenue Variable wages, 28% of sales revenue Other variable costs, 7% of sales revenue a. What sales revenue would the restaurant have to achieve next year in order to acquire the desired net income after tax? b. The restaurant has 60 seats and is open 365 days for lunch and dinner only. Lunch sales revenue is expected to be 40% of total volume with 2 seat turnovers. Dinner revenue will be 60% of total volume, with 1.25 turnovers. Calculate the average check per meal period that will cover all costs, including desired return on investment. 2. (20 points) A hotel expects sales revenue $950,000 for the next year. The hotel has 50 rooms and expected occupancy rate of 80%. a. Calculate the hotel's average room rate for next year. b. If the hotel operated at 30% double occupancy and management wanted a $15 spread between the single and double room rates, what would these rates be? 3. (20 points) The Inviting Inn has the below distribution for its room sales across its customer segments. Given that The Inviting Inn wants to achieve an average room rate of $60, how much should be charged to each customer segment for a room night? Market segment Annual room nights Percentage Rack rate % Transient 1050 70% Groups 20% 80% Sports teams 150 10% 60% 100% 300