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 depart-ment's variable costs (VC)
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 depart-ment's variable costs (VC) is $55,000 and the restaurant department's is $75,000. The manage-ment 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 fixed costs (FC) is $190,000 for Hosen, what is the total revenue that needs to be generated by only restaurant department with a given sales mix levels?
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