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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
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). (PC Desired Operating Profity contribution Margin perrems for Target Operating Profit (Rooms Sold ADe) Contribution sargs 600,000 600,000 Pease calculate the above: Sales for Target Operating Profit (rooms sold*ADR)? Extra data below: Rooms Division Cost Volume Prost Analysis Information Provided Average Daily Rate Variable Cost per Occupied Room Fixed Casts (per month) 330.00 170.00 420.000.00 a) Contribution Margin Per Room Sold 160.00 bjContribution Margin Ratio 0.485 This implies that the variable cost percentage is.) 51.52% c) Operating Income at a certain level of room nights Information Provided of Rooms Sold Sales Variable Cost Contribution Margin Fixed Costs Operating in come 3,000 990,000.00 510,000.00 480,000.00 420.000.00 60.000.00
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