The Travellers Hotel data for the past 5 years are presented below: Year Occupancy Management provides...

 

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The Travellers Hotel data for the past 5 years are presented below: Year Occupancy Management provides these additional data: Estimated increase in revenues in year 6 Estimated decrease in costs in year 6 Estimated revenues in year 4 Estimated revenues in year 5 Year 6 estimated revenues Year 6 estimated costs Year 6 estimated profit 1 2 3 4 Year 6 estimated occupancy Year 6 estimated revenues Year 6 estimated costs Year 6 estimated profit 90,000 80,000 120,000 100,000 110,000 Smoothing Factor Year 6 estimated revenues 15% 8% $31,000,000 $40,000,000 A in costs A in occupancy Slope "b" Intercept "a" Cost Formula: Revenues $27,000,000 $24,800,000 Required: 1. Compute the estimated profit of year 6 for the Tree Top Hotel using the Naive Model. Item Amount $38,400,000 $34,000,000 $38,500,000 Costs $13,500,000 $15,800,000 $22,800,000 $21,000,000 $25,300,000 2. Compute the estimated occupancy, revenues, costs, and profit for Year 6 using a 2-year moving average. Item Amount Computation 3. Using the exponential smoothing model, compute the forecasted revenues for Year 6. from Amount Computation Computation 4. Use the high-low method to determine the equation that relates to the costs of the hotel and its occupancy. Item Amount Computation Profit $13,500,000 $9,000,000 $15,600,000 $13,000,000 $13,200,000 5. Using the formula obtained in requirement 4, determine the estimated costs if the hotel expects 95,000 guests in Year 6. Amount Item Computation A in costs Occupancy 90,000 80,000 120,000 100,000 $34,000,000 110,000 $38,500,000 $31,000,000 $40,000,000 15% 8% Amount Amount $44,275,000 $38,500,000x (1+15%) 23,276,000 $25,300,000 ×(1-8%) $20.999,000 $44,275,000-$23,276,000 Revenues Costs $27,000,000 $13,500,000 $24,800,000 $15,800,000 $38,400,000 $22,800,000 $21,000,000 $25,300,000 Amount Computation 105,000 (100,000+ 110,000)+2 $36,250,000 ($34,000,000+ 38,500,000)+2 23,150,000 ($21,000,000+ 25,300,000)+2 $13,100,000 $36,250,000-$23,150,000 Computation $1,800,000 2.00 $37,000,000 $40,000,000 +[(2.00 × ($38,500,000-$40,000,000)] Computation ($40,000,000-$31,000,000)+($38,500,000-$34,000,000) Computation Profit Amount $7,000,000 $22,800,000-$15,800,000 40,000 120,000-80,000 $ 175.00 $7,000,000+40,000. $1,800,000 $28,800,000-($175 x 120,000) or $15,800,000-($175 * 80,000) S 175 x Amount $18,425,000 $1,800,000+($175 × 95,000) Computation $13,500,000 $9,000,000 $15,600,000 $13,000,000 $13,200,000 ww ge 10 11 22 13 14 15 ww 17 18 19 32 33 34 36 37 The Travelers Hotel data for the past 5 years are presented below Occrema Year Management provides these additional data Ested increase in revers in year 6 Estimated decrease in cos in year 6 Estimated revenues in year 4 Estimated revenues in year 5 Year 6 estated Yew 6 estimated costs Year 6 estimated profit Yes 5 estimated occupancy Year 6 estimated revenues Yes 6 estimated costs Year 6 estimated peolit Required: 1. Compute the imated profit of year 6 for the Tree Top Hotel wing the Naive Model Item Amount revenues Smoothing Factor Year 6 emated revenues S $ Revemos Coff 90,000 $ 27,000,000 $13,500,000 $1 80,000 $ 120,000 $ 24,800,000 $ 15,800,000 $ 22,800,000 $ 100,000 $ 110,000 $ 2. Compute the estimated occupancy, revenues, costs, and profit for Year 6 using a 2-year moving average frem Amount Computation instructions Ex. 1 15% 8% Ready combing Goods 31,000,000 40,000,000 3. Using the exponential smoothing model, compute the forecasted revenues for Year 6. Item Amount EX2 Ex.3 38,400,000 $ 34,000,000 $ 21,000,000 $ 38,500,000 $ 25,300,000 $ Computation 4. Use the high-low method to determine the equation that relates to the costs of the hotel and its occupancy Irem Amount Computation Ex4 → Computation Profit 13,500,000 9,000,000 15,600,000 13,000,000 13,200,000 JA B C D E F 2. Compute the estimated occupancy, revenues, costs, and profit for Year 6 using a 2-year moving average Item Amount Computation Year 6 estimated occupancy Year 6 estimated revenues Year 6 estimated costs Year 6 estimated profit www 3. Using the exponential smoothing model, compute the forecasted revenues for Year 6. Item Amount Smoothing Factor Year 6 estimated revenues A in costs A in occupancy Slope b Intercept "a" Cost Formula: 4. Use the high-low method to determine the equation that relates to the costs of the hotel and its occupancy.. Item Amount Computation Computation Ain costs y= 5. Using the formula obtained in requirement 4, determine the estimated costs if the hotel expects 95,000 guests in Year 6. Item Amount Computation G H The Travellers Hotel data for the past 5 years are presented below: Year Occupancy Management provides these additional data: Estimated increase in revenues in year 6 Estimated decrease in costs in year 6 Estimated revenues in year 4 Estimated revenues in year 5 Year 6 estimated revenues Year 6 estimated costs Year 6 estimated profit 1 2 3 4 Year 6 estimated occupancy Year 6 estimated revenues Year 6 estimated costs Year 6 estimated profit 90,000 80,000 120,000 100,000 110,000 Smoothing Factor Year 6 estimated revenues 15% 8% $31,000,000 $40,000,000 A in costs A in occupancy Slope "b" Intercept "a" Cost Formula: Revenues $27,000,000 $24,800,000 Required: 1. Compute the estimated profit of year 6 for the Tree Top Hotel using the Naive Model. Item Amount $38,400,000 $34,000,000 $38,500,000 Costs $13,500,000 $15,800,000 $22,800,000 $21,000,000 $25,300,000 2. Compute the estimated occupancy, revenues, costs, and profit for Year 6 using a 2-year moving average. Item Amount Computation 3. Using the exponential smoothing model, compute the forecasted revenues for Year 6. from Amount Computation Computation 4. Use the high-low method to determine the equation that relates to the costs of the hotel and its occupancy. Item Amount Computation Profit $13,500,000 $9,000,000 $15,600,000 $13,000,000 $13,200,000 5. Using the formula obtained in requirement 4, determine the estimated costs if the hotel expects 95,000 guests in Year 6. Amount Item Computation A in costs Occupancy 90,000 80,000 120,000 100,000 $34,000,000 110,000 $38,500,000 $31,000,000 $40,000,000 15% 8% Amount Amount $44,275,000 $38,500,000x (1+15%) 23,276,000 $25,300,000 ×(1-8%) $20.999,000 $44,275,000-$23,276,000 Revenues Costs $27,000,000 $13,500,000 $24,800,000 $15,800,000 $38,400,000 $22,800,000 $21,000,000 $25,300,000 Amount Computation 105,000 (100,000+ 110,000)+2 $36,250,000 ($34,000,000+ 38,500,000)+2 23,150,000 ($21,000,000+ 25,300,000)+2 $13,100,000 $36,250,000-$23,150,000 Computation $1,800,000 2.00 $37,000,000 $40,000,000 +[(2.00 × ($38,500,000-$40,000,000)] Computation ($40,000,000-$31,000,000)+($38,500,000-$34,000,000) Computation Profit Amount $7,000,000 $22,800,000-$15,800,000 40,000 120,000-80,000 $ 175.00 $7,000,000+40,000. $1,800,000 $28,800,000-($175 x 120,000) or $15,800,000-($175 * 80,000) S 175 x Amount $18,425,000 $1,800,000+($175 × 95,000) Computation $13,500,000 $9,000,000 $15,600,000 $13,000,000 $13,200,000 ww ge 10 11 22 13 14 15 ww 17 18 19 32 33 34 36 37 The Travelers Hotel data for the past 5 years are presented below Occrema Year Management provides these additional data Ested increase in revers in year 6 Estimated decrease in cos in year 6 Estimated revenues in year 4 Estimated revenues in year 5 Year 6 estated Yew 6 estimated costs Year 6 estimated profit Yes 5 estimated occupancy Year 6 estimated revenues Yes 6 estimated costs Year 6 estimated peolit Required: 1. Compute the imated profit of year 6 for the Tree Top Hotel wing the Naive Model Item Amount revenues Smoothing Factor Year 6 emated revenues S $ Revemos Coff 90,000 $ 27,000,000 $13,500,000 $1 80,000 $ 120,000 $ 24,800,000 $ 15,800,000 $ 22,800,000 $ 100,000 $ 110,000 $ 2. Compute the estimated occupancy, revenues, costs, and profit for Year 6 using a 2-year moving average frem Amount Computation instructions Ex. 1 15% 8% Ready combing Goods 31,000,000 40,000,000 3. Using the exponential smoothing model, compute the forecasted revenues for Year 6. Item Amount EX2 Ex.3 38,400,000 $ 34,000,000 $ 21,000,000 $ 38,500,000 $ 25,300,000 $ Computation 4. Use the high-low method to determine the equation that relates to the costs of the hotel and its occupancy Irem Amount Computation Ex4 → Computation Profit 13,500,000 9,000,000 15,600,000 13,000,000 13,200,000 JA B C D E F 2. Compute the estimated occupancy, revenues, costs, and profit for Year 6 using a 2-year moving average Item Amount Computation Year 6 estimated occupancy Year 6 estimated revenues Year 6 estimated costs Year 6 estimated profit www 3. Using the exponential smoothing model, compute the forecasted revenues for Year 6. Item Amount Smoothing Factor Year 6 estimated revenues A in costs A in occupancy Slope b Intercept "a" Cost Formula: 4. Use the high-low method to determine the equation that relates to the costs of the hotel and its occupancy.. Item Amount Computation Computation Ain costs y= 5. Using the formula obtained in requirement 4, determine the estimated costs if the hotel expects 95,000 guests in Year 6. Item Amount Computation G H

Answer rating: 100% (QA)

ANSWER Naive Model The Naive Model assumes that the next years value for a variable will be the same as the current years value Therefore the estimate... View the full answer