You have been given the following information about a motel for the coming year:

(A) Occupancy Forecast 75%

(B) Rooms department variable cost per occupied room is estimated to be $7.75

(C) Owners' investment $800,000

(D) Desired after tax yield on owners' investment 15%

(E) Current income tax rate 30%

(F) The motels fixed costs for the coming year were anticipated to be 825,000

(G) The motel has this many rooms available to rent 100

(H) Days opened each year 365

REQUIRED:

1. Calculate the Annual Revenue required to reach the desired after-tax yield on the owner's investment
2. Calculate the Number of Occupied Rooms required to achieve the PROFIT objective.
3. Calculate the Average Room Rate required to achieve the PROFIT objective.
4. Created a legend of key monetary items
5. Provide a schedule of fixed costs
6. Provide your answer in Contribution Margin Format
7. Make sure you provide brief detail on how you arrived at REQUESTED key numbers.