Question
Imagine that Sky High Hotel has two operating departments, which are rooms and F&B departments. Rooms and F&B departments have acquired $300,000 and $240,000 revenue
Imagine that Sky High Hotel has two operating departments, which are rooms and F&B departments. Rooms and F&B departments have acquired $300,000 and $240,000 revenue respectively. Also, the VC for the rooms and F&B departments are $120,000 and $95,000 respectively. This hotel has an FC of $150,000. The management of this hotel set the sales mix structure as 80.00% for rooms department and 20.00% for the F&B department. What is total revenue that needs to be generated by only rooms department at the breakeven with a given sales mix levels?
$249,211
$199,369
$211,818
$181,562
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