Double T resort has two departments, which are rooms and F&B. Rooms and F&B departments’ revenues are $280,000 and $130,000 respectively. Also, the VCs are $200,000 and $90,000 for rooms and F&B department respectively. Suppose that room’s revenue has increased by 14.00% and there is a 12.00% decrease in VC for both departments. If the FC is $160,000, how much reduction in total revenue at the breakeven point has Double T experienced before and after the changes in both revenues and VCs?  

Group of answer choices

$199,023 reduction

$176,179 reduction

$237,561 reduction

$203,822 reduction

Answer rating: 100% (QA)

Before the changes Total revenue before Revenue from rooms Revenue from FB 280000 130000 410000 Tota... View the full answer