Question
DDM motels two revenue generating departments are rooms and F&B departments. Total revenues of rooms and F&B are $100,000 and $120,000 respectively. Rooms departments VC
DDM motels two revenue generating departments are rooms and F&B departments. Total revenues of rooms and F&B are $100,000 and $120,000 respectively. Rooms departments VC is $60,000 and the F&B departments VC is $70,000. Also, the executives of DDM motel want to reach a desired profit of $200,000. The executives have set the sales mix of the rooms department as 75.00% and 25.00% for the F&B department. Assume that the FC is $170,000 for DDM. Based on the information given, what is total revenue that needs to be generated by only rooms department with a given sales mix structure?
Group of answer choices
$630,422 total revenue
$678,318 total revenue
$642,045 total revenue
$599,593 total revenue
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