The condensed income state of the SHA inn is as follows:

SHA Motel

For the year ended December 31, 20X1

Given this information, use CVP analysis to calculate each of the following situations for the SHA Hotel:

1. Weighted average contribution margin ratio

2. Determine the breakeven point

3. Total revenue to yield a net income of $500,000 (The effect of income taxes on net income must be accounted for, assuming the SHA hotels income tax rate is 20%)

4. Room revenues when profit equals $500,000

5. Breakeven point if fixed costs increased by $300,000

SHA Hotel For the year ended December 31, 20X1 Rooms Food Beverage Telephone Total Revenue $4,000,000 1,200,000 600,000 200,000 6,000,000 VC $800,000 1,050,000 350,000 200,000 2,400,000 CM $3,200,000 150,000 250,000 0 3,600,000 3,300,000 300,000 Fixed Costs Income before Income Taxes Income Taxes Net Income 60,000 240,000