Question

The condensed income statement of the Vegas Inn is as follows: Revenue VC FC NI Room...

The condensed income statement of the Vegas Inn is as follows:

Revenue

VC

FC

NI

Room

$           500,000

$           200,000

$      150,000

$      150,000

Food

$           300,000

$           100,000

$        50,000

$      150,000

Total

$           800,000

$           300,000

$      200,000

$      300,000

Other Variable expenses*

$        50,000

Other Fixed Costs**

$      100,000

Pretax income

$      150,000

Income taxes

$        30,000

Net income

$      120,000

* Rent (10%of room sales)

** Includes depreciation and amortization of $10,000

Please use the table above to solve the question 41 to 45.

41.

What is the CMR for Room and Food department?

Group of answer choices

a. Room: 30.00%; Food: 50.00%

b. Room: 40.00%; Food: 33.33%

c. Room: 60.00%; Food: 66.67%

d. Room: 30.00%; Food: 16.67%

42.

What is the weighted CMR for Vegas Inn?

Group of answer choices

a. 56.25%

b. 62.50%

c. 37.50%

d. 31.25%

43.

What is the revenue at breakeven point for Vegas Inn?

Group of answer choices

a. $480,000.00

b. $355,555.56

c. $320,000.00

d. $533,333.33

44.

What is the revenue when Vegas Inn wants to make a net income of $200,000?

Group of answer choices

a. $720,000.00

b. $977,777.78

c. $800,000.00

d. $880,000.00

45.

What is the revenue when Vegas Inn wants to make a net income of $200,000?

Group of answer choices

a. $720,000.00

b. $977,777.78

c. $800,000.00

d. $880,000.00

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

41. Contribution Margin Ratio = (Revenue - VC) / Revenue
Room = (500000-200000)/500000 = 60%
Food = (300000-100000)/300000 = 66.67%

Answer is c. Room: 60.00%; Food: 66.67%

42.
Weighted Contribution Margin Ratio = (800000-350000)/800000 = 56.25%

Answer is a. 56.25%

43.
Breakeven = Fixed Expenses / Weighted Contribution Margin Ratio
= $300000 / 56.25% = $533333.33

Answer is d. $533,333.33

44.
Net Income = $200000
Pretax Income = $200000/0.80 = $250000

Revenue = ($300000+250000)/56.25% = $977777.78

Answer is b. $977,777.78

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The condensed income statement for a Fletcher Inc. for the past year is as follows: Product...
The condensed income statement for a Fletcher Inc. for the past year is as follows: Product F G H Total Sales $300,000 $210,000 $340,000 $850,000 Costs: Variable costs $180,000 $180,000 $220,000 $590,000 Fixed costs 50,000 50,000 40,000 140,000 Total costs $230,000 $230,000 $260,000 $730,000 Income (loss) $ 70,000 $(20,000) $ 80,000 $120,000 Management is considering the discontinuance of the manufacture and sale of Product G at the beginning of the current year. The discontinuance would have no effect on the...
River Front restaurant has the average check at $25, which the foods are $20 and beverages...
River Front restaurant has the average check at $25, which the foods are $20 and beverages are $5. The profit margin is 30% for food and $2 for beverage. The fixed costs that includes payroll, rent, and utilities are anticipated for $200,000 per month. (Please answer the question 46 to 50 46. What is the weighted CMR for River Front restaurant? Group of answer choices a. 30% b. 35% c. 32% d. 36% 47. What is the revenue at breakeven...
How do I complete this income statement? The following information pertains to a Hotel for the...
How do I complete this income statement? The following information pertains to a Hotel for the year 2016: Net rooms revenue: $1,050,000 Food and beverage revenue: $650,000 Telephone: revenue: $45,000; cost of sales: $15,000; payroll: $18,000 F&B Info: Beg. Inv = $75,000; End. Inventory = $55,000; Purchases =$190,000 There were no employee meals or complimentary meals given. F&B Payroll: $200,000; F&B Other Expense: $125,000 Maintenance payroll: $75,000; other expense: $90,000 Rooms payroll: $150,000; other rooms expense: $120,000 A&G Payroll: $105,000;...
Questions 4 through 8 are based on the following fact statement: Complete the following income statement,...
Questions 4 through 8 are based on the following fact statement: Complete the following income statement, including cost of goods sold and answer the five multiple-choice questions below. Credit is given for your answers to the multiple-choice questions only. For each question, circle the letter that is the correct answer. Company X Income Statement FYE 12/31/2020 COLUMN 1 COLUMN 2 COLUMN 3 NET SALES REVENUE 4._________ EXPENSES: COST OF GOODS SOLD Beginning Merchandise Inventory -0-_ Purchases 5.__________ Less: Purchase Returns...
• Given the information below, answer questions from #11 to #12. TCA Hotel Income Statement For...
• Given the information below, answer questions from #11 to #12. TCA Hotel Income Statement For the Year Ended December 31, 2018 2018 ($) Rooms: Revenue 1,041,000 Expenses (Payroll & related expense and Others) 264,000 Room Department Income                          777,000 Food : Revenue                   626,000 Expenses (Cost of sales, Payroll & related expense and Others)                          507,000 Food Department Income             119,000 Others:         Revenue              52,000         Expenses (Payroll & related expense, and Others)            68,000 Other Departments Income...
1. Which of the following accounts would NOT be reported in the income statement as an...
1. Which of the following accounts would NOT be reported in the income statement as an expense? Group of answer choices: A) Dividends expense B) Depreciation expense C) Interest expense D) Income taxes expense 2. Which of the following journal entries would be used to close the Income Summary account of a profitable company? A) Debit Income summary; Credit Capital stock B) Credit Income summary; Debit Retained earnings C) Credit Income summary; Debit Capital stock D) Debit Income summary; Credit...
1) Aday’s Restaurant has the following income statement: Revenue:    Food Sales                         
1) Aday’s Restaurant has the following income statement: Revenue:    Food Sales                          $240,000    Beverage Sales                        $86,000 Total Sales               $326,000 Cost of Sales:    Food Costs                $72,000    Beverage Costs             $15,480 Total Costs                 $87,480 Gross Profit              $238,520 Expenses:    Operating            $8,000    Labor                $26,000    Miscellaneous        $4,000    Administrative       $14,000 Total Expenses            $52,000 NET PROFIT                $186,520 Calculate operating expenses as a % of sales          Select one: a. 3.00% b. 5% c. 6.34% d. 2.45% 2) Aday’s Restaurant has the following income statement: Revenue:    Food Sales                          $240,000    Beverage...
Review the attached income statement. Pay attention to the revenue and expenses both for the current...
Review the attached income statement. Pay attention to the revenue and expenses both for the current month and the year to date, YTD. Please review both the actual and the budgeted amounts for each line item. Remember that positive variance in revenue is usually a good thing but positive variances in expenses is usually negative. A Manager must consider both the volumes and the revenue per patient day or procedure and the expenses per patient day or procedure to truly...
The income statement for Camire, Inc. appears below: Revenue $130,000 Cost of goods sold 50,000 Depreciation...
The income statement for Camire, Inc. appears below: Revenue $130,000 Cost of goods sold 50,000 Depreciation expense 32,000 Other operating expenses 8,000 Income tax expense 14,000 Net income $ 26,000 During the year, Camire Inc.’s cash increased by $4,200, accounts receivable increased by $1,200, inventory decreased by $3,800, and accounts payable increased by $400. How much is the company's cash flow from operations? A. $65,200 B. $58,000 C. $59,000 D. $61,000
6. The following items can be classified as fringe benefits that are excludable as gross income...
6. The following items can be classified as fringe benefits that are excludable as gross income for tax purposes, except: Group of answer choices Group term life insurance in the amount of $50,000 Use of athletic facilities Educational assistance in the amount of $5,250 Employer bonus check 7. To the extent that capital losses exceed capital gains, noncorporate taxpayers may use up to ______ of losses to offset ______ income: Group of answer choices 3000; other taxable income 3000; capital...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT