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The M & L Inn's summary income statement is as following: Rooms Food Total Revenue $ 1,500,000 $ 900,000 $ 2,400,000 Variable Cost $ 600,000
The M & L Inn's summary income statement is as following:
Rooms | Food | Total | |
Revenue | $ 1,500,000 | $ 900,000 | $ 2,400,000 |
Variable Cost | $ 600,000 | $ 600,000 | $ 1,200,000 |
Contribution Margin | $ 900,000 | $ 300,000 | $ 1,200,000 |
Other Fixed Cost | $ 500,000 | ||
Pretax Income | $ 700,000 | ||
Income Taxes | $ 175,000 | ||
Net income | $ 525,000 |
a) Determine the Weighted Contribution Margin Ratio. (1 point)
b) Determine the revenue at breakeven point for M & L Inn. (2 points)
c) Calculate the revenue if the owner wants to make a profit of $300,000. (3 points)
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