Use below information for Questions 7 to 10: Jane Botosan operates a bed and breakfast hotel...

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Use below information for Questions 7 to 10: Jane Botosan operates a bed and breakfast hotel in a resort area near Lake Michigan. Depreciation on the hotel is $60,000 per year. Jane employs a maintenance person at an annual salary of $41,000 and a cleaning person at an annual salary of $24,000. Real estate taxes are $10,500 per year. The rooms rent at $122 per person per night including breakfast. Laundry and cleaning services cost $10.5 per person per night and the food is $5.9 per person per night. Q-7) Determine the BEP in sales. Q-8) Determine TNI in sales for $50,000 NI. Q-9) Jane is considering changing the business strategy. She considers installing additional cleaning machines which will decrease laundry and cleaning service per person per night by $3. However, fixed depreciation cost will increase by $4,090. Determine BEP in sales if the changes are made. (Do NOT round the rental number to integer.) Q-10) Determine BEP in units at which Jane would be indifferent between the current and proposed business models. (Do NOT round the rental number to integer.) Use below information for Questions 7 to 10: Jane Botosan operates a bed and breakfast hotel in a resort area near Lake Michigan. Depreciation on the hotel is $60,000 per year. Jane employs a maintenance person at an annual salary of $41,000 and a cleaning person at an annual salary of $24,000. Real estate taxes are $10,500 per year. The rooms rent at $122 per person per night including breakfast. Laundry and cleaning services cost $10.5 per person per night and the food is $5.9 per person per night. Q-7) Determine the BEP in sales. Q-8) Determine TNI in sales for $50,000 NI. Q-9) Jane is considering changing the business strategy. She considers installing additional cleaning machines which will decrease laundry and cleaning service per person per night by $3. However, fixed depreciation cost will increase by $4,090. Determine BEP in sales if the changes are made. (Do NOT round the rental number to integer.) Q-10) Determine BEP in units at which Jane would be indifferent between the current and proposed business models. (Do NOT round the rental number to integer.)

Answer rating: 100% (QA)

Janes Bed and Breakfast Calculations Fixed Costs Depreciation60000 Salaries41000 24000 65000 Real Estate Taxes10500 Total Fixed Costs60000 65000 10500 ... View the full answer