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The Lucas Inn has room and food operations. The rooms operation provide 65% of the total revenue and has variable cost of 25%. The food operation provides 35% of the total revenue cost and has variable cost of 60%. The total annual fixed cost are $300,000.
1. what is the CMR for the rooms operation?
2. what is the CMR for the food operation?
3.what is the weighted average CMR for the Lucas Inn?
4. what is the breakeven point?
5. If the average tax rate is 20%, what is the annual revenue required to achieve annual net income of $100,000.
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