Question
Hosen Inn's two revenue generating departments are catering and restaurant. Departmental revenues are $150,000 and $180,000 respectively for catering and restaurants. Catering department's VC is
Hosen Inn's two revenue generating departments are catering and restaurant. Departmental revenues are $150,000 and $180,000 respectively for catering and restaurants. Catering department's VC is $55,000 and the restaurant department's is $75,000. The management of Hosen Inn wishes to achieve a desired profit of $220,000. The sales mix structure of catering and restaurant departments are 60.00% and 40.00% respectively. If FC is $190,000 for Hosen, what is total revenue that needs to be generated by only restaurant department with a given sales mix levels?
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