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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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