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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). 600,000 Rooms Sold (PC-Desired Operating Pf/contribution Maginperreoem sold) Setor Target Opesting Proft Rooms Sold"ADE) Operating come 4 Please calculate the above: Rooms sold (Fixed Cost + Desired Operating Profit / Contribution Margin per room sold)? Extra data below: Rooms Division Cost Volume Profit Analysis Information Provided Average Daily Rate Variable Cost per Occupied Room Fixed Costs (per month) 330.00 170.00 420,000.00 Contribution Margin Per Room Sold 160.00 b) Contribution Margin Ratio 0485 This implies that the variable cost percentage is.) 51.52% c) Operating Income at a certain level of roomnights Information Provided of Rooms Sald 3.000 Sal en Variable Cost Contribution Margin Fixed Costs Operating in come 990,000.00 $10,000.00 480,000.00 420,000.00 60.000.00
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