there's only one fixed cost

2. The BU hotel operates multiple departments. Annual revenue and cost figures are as followed: Sales Department Rooms $2,500,000 1,000,000 500,000 Variable Costs $500,000 400,000 150,000 Food Beverage Total fixed cost of the operation is $600,000 for the year. 1. What is the break-even point for the BU Hotel (2 points)? 2. The owner wants to increase the food department's sales by advertising in the Boston Restaurant Association at the cost of $80,000. What level of food sales is required to cover this expenditure? (2 points) 3. Assume that you as the hotel GM would like to spend advertising expenses of $220,000 on TV for the hotel (including 3 departments). How much of revenue responsibility should you assign to the rooms division manager if you assign by sales mix ratio? (2 points) 4. The hotel is expecting to have $300,000 more room sales in the following year due to the growth of the international tourist market (Room Sales increase to $2,800,000 while sales for the other two departments remain the same.) Please calculate the new break-even point for the BU Hotel for the following year based on the change in the sales mix ratio. (4 points)