1. A 250 room hotel has an annual revenue $8,500,000. Its fixed costs are $3,500,000 a year, and its total variable costs $2,950,000 at an average occupancy of 70 percent. a. What is the hotel's occupancy break-even level in both dollars and occupancy percent? b. If the owner wants to have $900,000 profit for a year after tax rate of 40%, how many fewer or more rooms per night would need to be sold than is the case in part a? and how much less or more revenue per night than in a case of (a)? c. Show the hotel's performance in CVP graph based on answers in part a and b 2. The condensed income statement of the BU hotel is as follows: Income $3,500,000 1,000,000 200,000 4,700,000 500.000 $1,000,000 1,000,000 200,000 Rooms Food Beverage Total Dept Income Other variable Exp* Other Fixed Exp Pretax income Income taxes Net income $5,000,000 3,000,000 500,000 500,000 1,000,000 100,000 2,200,000 600,000 1,600,000 "Rent (10% of room sales) Includes depreciation and amortization of $500,000 a. Compute the CMR for the room department b. Compute the BU Hotel's weighted average CMR c. Compute the BU Hotel's breakeven point d. If the BU Hotel wants to make $1,500,000, what must its room sales equal? Question 3 (1 point each) SHA Hotel budgeted 800 room sales for the week ended March 10. The estimated average price per room was $18.50. The actual average price per room was 10 percent greater than anticipated, while room sales in units were 10 percent less than forecasted. a. what is the budget variance (sales revenue variance)? Is it favorable or unfavorable? b. What is the price variance? Is it favorable or unfavorable? c. What is the sales volume variance? Is it favorable or unfavorable