Question: Sun & Fun Beach Resort has two operating departments that generate revenues for the entire operation. Rooms department has generated total revenue of $400,000 with

Sun & Fun Beach Resort has two operating departments that generate revenues for the entire operation. Rooms department has generated total revenue of $400,000 with a variable cost (VC) of $180,000. Also, food and beverage (F&B) department's total revenue is $270,000 with a VC of $135,000. Total fixed cost for Sun & Fun is $340,000. Based on the information given, what is the total revenue when Sun & Fun breaks even?

Rollin Tan Theme Hotel's internal financial data show that its Weighted Contribution Margin Ratio (CMRw) is 65.00%. This hotel has a fixed cost (FC) of $250,000 and the management wouldlike to generate a desired profit of $145,000. Based on the information given, how much total revenue must be generated by Rollin Tan if they want to earn a desired profit of $145,000? Additionally, how much additional revenue must be generated beyond breakeven analysis (BE) point to reach at the desired profit level?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!