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The Tower Hotel has two operating departments: Rooms and F&B. 70% of the hotels total revenue is earned from room sales and 30% of the
The Tower Hotel has two operating departments: Rooms and F&B. 70% of the hotels total revenue is earned from room sales and 30% of the total revenue is earned from F&B sales. Rooms departments contribution margin ratio is 60% and F&B departments 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. $759,230
c. $701,754
d. $1,234,502
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