The Grand River Hotel has both a rooms dept. and a coffee shop. It desires to know its breakeven point. Its variable cost % for the rooms and coffee shop are 20% and 80%, respectively. The ratio of room to food sales is 4 to 1. Fixed costs are $300,000 annually.

If the hotel desires to earn $15,000 of net income, what must its room sales equal? (Assume a tax rate of 40%.)

Question 11 options:

	$344,615
	$382,352
	$430,769
	$477,941