vUK level of sales at the German Inn? investment in this property? quired if the owners are to earn 20 percento Problem 7 The Double A Inn, owned by Alex and Andy Roof, includes a forty-room lodging operation d coffee shop. The average annual revenue and variable expense figures for the past two years have been as follows: Revenue Variable expenses Rooms $600,000 120,000 Coffee Shop $400,000 200,000 The fixed costs are as follows: Rooms department Coffee shop Overhead $50,000 60,000 300,000 Required: Assuming the sales mix remains constant, calculate the following: a. b. 1. The annual revenue at the breakeven point. Total net income when total revenue equals $1,200,000. (Assume an income tax of 20 percent.) The required level of annual revenue when net income is $200,000. (Assume there are no income taxes.) c