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ABC Inn has 2 departments: rooms and F&B. the rooms department has a CMR of 0.6 and the F&B department has a CMR of 0.4 the rooms department take in 70% of total revenue and the F&B department takes in 30% of total revenue. If the combined total monthly fixed costs for the entire hotel are equal to $100,00. What is the break-even level of sales?

ABC Inn has 2 departments: rooms and F&B. the rooms department has a CMR of 0.6 and the F&B department has a CMR of 0.4 the rooms department take in 70% of total revenue and the F&B department takes in 30% of total revenue. If the combined total monthly fixed costs for the entire hotel are equal to $100,00. What is the break-even level of sales?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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  1. ABC Inn has 2 departments: rooms and F&B. the rooms department has a CMR of 0.6 and the F&B department has a CMR of 0.4 the rooms department take in 70% of total revenue and the F&B department takes in 30% of total revenue. If the combined total monthly fixed costs for the entire hotel are equal to $100,00. What is the break-even level of sales?
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