Problem 7 The Double A Inn, owned by Alex and Andy Roof, includes a forty-room lodging ope and coffee shop. The average annual revenue and variable expense figures for years have been as follows: the past two Rooms Coffee Shop Revenue Variable expenses $600,000 120,000 $400,000 200,000 The fixed costs are as follows: Rooms department Coffee shop Overhead $50,000 60,000 300,000 Required: 1. Assuming the sales mix remains constant, calculate the following The annual revenue at the breakeven point. a