I. Bryan Bessner has invested $$800,000$ in a small theatre. He would like to see a $7\%$ after$-$tax return on his investment this year. Bryan faces a personal tax rate of $40\%.$

There are many costs involved in running a theatre. Estimates indicate that variable costs will use up $62\%$ of the revenue earned by the theatre.

Fixed costs would be:

Salaries.....................$$672,000$

Insurance................... $40,000$

License..................... $18,000$

Utilities..................... $28,000$

Also, depreciation on the theatre building itself would be $10\%$ of the building$$s $$1,200,000$ book value.

Part of Bryan$$s investment in the theatre was used to buy equipment this year, costing $$180,000.$ This equipment depreciates by $20\%$ per year.

Part of Bryan$$s investment in the theatre came through a bank loan of $$200,000,$ on which he will be paying $8\%$ interest this year.

REQUIRED:

a$.$ Please calculate the total amount of revenue that this theatre will need to earn this year, in order to meet all costs and allow for Bryan$$s expected after$-$tax return. Show your work. $($more space next page$)$