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The lucas inn has room and food operations. The rooms operation provides 65% of the total revenue and has variable costs of 25%. The food

The lucas inn has room and food operations. The rooms operation provides 65% of the total revenue and has variable costs of 25%. The food operation provides 35% of the total revenue and has variable costs of 60%. the total annual fixed costs are $300,000.

  1. What is the CMR for the rooms operation?
  2. What is the CMR for the food operation?
  3. What is the weighted average CMR for the Lucas Inn?

Answer questions 1-3.

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