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Back Question 6 Not yet answered Marked out of 4.00 P Flag question Calculate the required item below to generate a desired operating income of
Back Question 6 Not yet answered Marked out of 4.00 P Flag question Calculate the required item below to generate a desired operating income of $600,000. (Remember, you are not just breaking even. You are covering fixed costs of $420,000 plus $600,000 of operating income). Achieving a Target Operating Profit Information Provided Desired operating profit 1) Rooms Sold: (FC+ Desired Operating Profit)/ Contribution Margin perrooom sold) 2) Sales for Target Operating Profit= (Rooms Sold ADR) 3) VariableCosts (Sales variable cost percentage) 4) Contribution Margin Fixed Costs Operating Income Extra data below: Rooms Division Cost Volume Profit Analysis Pease calculate the above: Contribution Margin (Sales - Variable Cost) Information Provided Aver age Daily Rate Variable Cost per Occupied Room Fixed Costs (per month) a) Contribution Margin Per Room Sold b) Contribution Margin Ratio 330.00 170.00 420,000.00 160.00 600,000 0.485 51 52% 420,000 600,000 Meeting now Using Int
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