Question
Sun & Fun Beach Resort has two operating departments that generate revenues for the entire operation. Rooms department has generated total revenue of $400,000 with
Sun & Fun Beach Resort has two operating departments that generate revenues for the entire operation. Rooms department has generated total revenue of $400,000 with a variable cost (VC) of $180,000. Also, food and beverage (F&B) department's total revenue is $270,000 with a VC of $135,000. Total fixed cost for Sun & Fun is $340,000. Based on the information given, what is the total revenue when Sun & Fun breaks even?
Rollin Tan Theme Hotel's internal financial data show that its Weighted Contribution Margin Ratio (CMRw) is 65.00%. This hotel has a fixed cost (FC) of $250,000 and the management wouldlike to generate a desired profit of $145,000. Based on the information given, how much total revenue must be generated by Rollin Tan if they want to earn a desired profit of $145,000? Additionally, how much additional revenue must be generated beyond breakeven analysis (BE) point to reach at the desired profit level?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started