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Problem 9 George Patel, the owner / operator of the Riverside, is interested in determining the level of sales necessary to realize a net income
Problem
George Patel, the owneroperator of the Riverside, is interested in determining the level of sales necessary to realize a net income of $ next year. He has compiled records on each departments sales and costs and assumes that the sales mix will be the same next year. The major department, the rooms department, had sales of $ million, and its contribution margin was $ million. The coffee shop had sales of $ and variable costs of $ The restaurant had sales of $ million and variable costs of $ Mr Patel assumes that the fixed costs will be $ million.
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Question
What is the CMRw
Question
What is the required level of total sales to generate $ net income? Assume that there are no income taxes.
Question
What is the required level of total sales to generate $ net income if the income tax rate is percent?
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