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The ACC Inn is a small 75 room hotel that would like to achieve a Net income after tax of $265,000 next year. IAT =
The ACC Inn is a small 75 room hotel that would like to achieve a Net income after tax of $265,000 next year. IAT = Tax Rate = vc%= Fixed Expenses = Their Variable Cost % is forecasted to be 45% and the Inn has Fixed Expenses of $360,000. Lastly, the Inn pays a 30% tax rate on their operating income. Required Revenues With this information, use the bottom up approach to discover what the required revenues need to be in order Variable Expenses Fixed Expenses Operating Income Taxes Net income after tax
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