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A wood cabin has total annual sales revenue of $1,020,000, variable costs of $350,000, and fixed costs of $570,000. The fixed costs include $80,000 a

image text in transcribedimage text in transcribed A wood cabin has total annual sales revenue of $1,020,000, variable costs of $350,000, and fixed costs of $570,000. The fixed costs include $80,000 a year for a land rental lease. The landowner offered an alternative variable rent based on 20% of the revenue. Under which plan will we need less revenue to break-even? (Hint: Acceptance of the variable lease will reduce fixed costs by $80,000 and increase variable costs by 20%.) .2 Now assuming the cabin owner needs to include taxes in her consideration. She wants a net income of $50,000. The tax rate is 20%. The fixed costs are $570,000, and the hotel's contribution margin \% is 40%. What is the required revenue

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