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The Double A Inn owned by Alex and Andy Roof, includes a forty-room lodging operation and coffee shop. The average annual revenue and variable expense

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The Double A Inn owned by Alex and Andy Roof, includes a forty-room lodging operation and coffee shop. The average annual revenue and variable expense figures for the past two years have been as follows: Required: Assuming the sales mix remains constant, calculate the following: The annual revenue at the breakeven point. Total net income when total revenue equals $1, 200, 000. (Assume an income tax of 20 percent.) The required level of annual revenue when net income is $200, 000. (Assume there are no income taxes.) Answer the same questions as Part 1, but assume the sales mix has changed to 75 percent/25 percent for rooms/coffee shop

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