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How much reduction in total revenue at the breakeven point

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Catering and convention departments' revenues were $280,000 and $190,000 respectively for the Wayside motel. The VCs of catering and convention departments were $120,000 and $90,000 respectively. Suddenly, the catering revenue has increased by 8.00%, convention revenue has increased by 10.00% and there is a 10.00% decrease in VC for both departments.

Question 1: If the FC is $240,000, how much reduction in total revenue at the breakeven point has Wayside experienced before and after the changes in both revenues and VCs?

Reference no: EM132537358

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