Problem 5-4&5 The Lucas Inn has room and food operations. The rooms operation provides 65 percent of the total revenue and has variable costs of 25 percent. The food operation provides 35 percent of the total revenue and has variable costs of 60 percent. The total annual fixed costs are $300,000. 4. What is the breakeven point? (use 2 decimal places for dollars and cents) 478087.65 5. Revenue required for $100,000 profit with 20% tax rate. (use 2 decimal places for dollars and cents) 677290.84

Problem 5-4&5 The Lucas Inn has room and food operations. The rooms operation provides 65 percent of the total revenue and has variable costs of 25 percent. The food operation provides 35 percent of the total revenue and has variable costs of 60 percent. The total annual fixed costs are $300,000. 4. What is the breakeven point? (use 2 decimal places for dollars and cents) 478087.65 5. Revenue required for $100,000 profit with 20% tax rate. (use 2 decimal places for dollars and cents) 677290.84

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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