Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PB.9 A motel has a rooms department and a dining room, and total fined cost of the operation is $335,000. Annual sales revenue and cost

image text in transcribed
PB.9 A motel has a rooms department and a dining room, and total fined cost of the operation is $335,000. Annual sales revenue and cost figures are as follows Sales revenue Variable costs Contribution margin $440,000 $110,000 32.000) 66,000) 198,000) 08.00 S 44,000 $352,000 a. What will be the increase in contribution margin if there is a $20,000 b.What will be the increase in contribution margin if there is a $20,000 c. If we want to double the current operating income be fore tax with vari- d. If we want to double the curnent total operating income before tax with increase in sales revenue only in the rooms department? increase in sales revenue only in the food department? able costs remaining the same and covering fixed costs, what increase in room sales revenue is needed? direct costs remaining the same and covering fixed costs, what increase in food sales revenue is needed? e. If we want to double the curnent operating income before tax with di- rect costsmaining the same, what will increase in sales revenue have to be if the increase is provided jointly by both departments combined? Assume sales revenue ratios stay as originally stated

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Accounting

Authors: Frank Wood, Alan Sangster

7th Edition

0273619829, 9780273619826

More Books

Students also viewed these Accounting questions

Question

Estimate the error in Prob. 1 by (5)

Answered: 1 week ago

Question

5. Explain how to conduct an appraisal feedback interview.

Answered: 1 week ago

Question

2. Answer the question, Who should do the appraising?

Answered: 1 week ago