1. The monthly fixed costs at the XXX Hotel are $50,000; and it spends $30 variable costs per room sold. One thousand (1,000) rooms were sold in July at the average price of $100 per room. The tax rate is 35%. Determine the amount of net profit (after tax).

2. The current cost structure of your company is; the fixed costs of $425,000 per year; its variable costs are 30% of the revenues. If you hire a new manager at the annual salary of $65,000 (fixed costs), how much sales will you need to breakeven?

3. During the past several years, your total revenues have been consistently made of 65% of the revenues from the Rooms Department, and 35% of the revenues from the Banquet Department. Your projection of the total revenues of the next year will be $1,800,000. If the past trends continue into the next year, how much revenues ($) will be generated by the Banquet Department?