2. ABC Gaming Inc. plans to buy a nearby non-gaming hotel to expand its business. It requires at least 12% return on its investment after taxes. The firm has studied the 100-room hotel and come up with the following results:

a. The rooms department generates 70% of the sales and operates with a CMR of 0.8.

b. The F&B department generates the other 30% of sales and has a CMR of 0.6.

c. Fixed costs per year are estimated to be $1,000,000.

d. In order to purchase the hotel, the firm would have to invest $5,000,000.

e. The firms tax rate is 40%.

Requirement: What is the level of the hotel sales revenue that would meet the firms investment return goal?