McCafe Inc. has built a separate car parking area having parking space of 1,000 cars. Si/hour is charged for cach car as parking fee whereas, the parking area operates for 2,600 hours/year. Normally, customers use the parking area as an average for two hours. McCafe has rented this parking area for $7.500/month from a construction company There are five employees who look after the parking area who are paid for 50 weeks, $350/week. These employees are allowed two-week holidays and an additional compensation of $600 are paid to cach employee during these holidays. All five employees work during the months when traffic load is high whereas, four employees handle all the matters when traffic load is lesser. The overall workload is managed by a Manager who is paid $25,000/year. Maintenance and other operating costs of parking area include fixed costs of $2,500 per month whereas 7 cents/parking-space/hour is included in variable cost. Required: (1) Calculate the annual break-even point in dollars (Car Parking Revenue). (in) Calculate the contribution margin (CM) and contribution margin ratio (CMR). (ii) Prepare a CVP graph for McCafe Inc. considering the annual base (Take 1000 units on point scale for parking space hours as the measure of volume of activity. The annual capacity of parking area is 2.6 million parking space hours). (iv) If the company sets a target annual operating income of $300,000; what would be the annual parking revenue necessary to earn the required income