Part II - Short Answers (4 questions @ 24 points each) Question 1 The condensed income statement for the Colton Inn (CI) is as follows: Revenue Variable Fixed Cost Cost Room S 3.000.000 $ 1,000,000 $ 500,000 Food $ 1.000.000 1.000.000 1.000.000 Other S 500,000 $ 200,000 $ 100,000 Total department income S 500.000 2200.000 $ 1.600.000 Other variable expenses (rent, 10% of room sales) Other fixed costs (incl. depre, & ammort 5500,000) Pretax income Income Taxes Net Income Department Income $ 3.500,000 1.000.000 $ 200,000 $4,700,000 300.000 $ 2,000,000 $ 2.200.000 $ 600,000 S 1.600.000 (1) Please compute finish the following table Revenue Sales Mix Share $ 58.82% Room Food Other Total 5,000,000 3,000,000 500,000 8,500,000 S 100.00% (2) Please compute the weighted average CMR using the following formula: CMR CMR (Room) Sales Mix Share (Rooms) + CMR (Food) * Sales Mix Share (Food) + (weighted) - CMR (Other) Sales Mix Share (Other) (3) Please compute the total revenue at breakeven point (4) If the CI wants to make $1,500,000 of net income (after tax), what must its rooms sales equal (assume that the CI will maintain the same sales mix share)