The Relax Inns rooms department has annual sales of $700,000 and variable costs of $200,000....
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The Relax Inns rooms department has annual sales of $ and variable costs of $ The inns food department has annual sales revenue of $ and variable costs of $ The inns fixed costs are $ The total sales revenue of the inn is $ jointly. a Calculate the inns breakeven point, assuming the ratio of room sales to food sales remains constant at any level of total sales points b The owners want to increase their restaurants sales revenue, and they plan to spend $ on brochures to be displayed in the inns entry lobby and the guest rooms. What level of incremental food sales must be achieved to cover the brochure cost? Assume that room sales remain constant. points c If the inns owners want to increase operating income by $ by increasing the rooms occupancy rate, what is the incremental room sales revenue required to support the $ increase to operating income? Assume no effect on restaurant sales.points
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