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The Hotel has two operating departments. Rooms and F&B. 70% of the hotel's total revenue is earned from room sales and 30% of the total
The Hotel has two operating departments. Rooms and F&B. 70% of the hotel's total revenue is earned from room sales and 30% of the total revenue is earned from F&B sales.
Rooms department's contribution margin ratio is 60% and F&B department's contribution margin ratio is 50%. If the fixed cost of the hotel is $400,000, and the management is targeting a before -tax profit of $150,000, what is the required sales revenue? (Rounded to whole numbers)
A.$964,912
B.$795,230
C.$1,234,502
D.$701,754
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