1. The limited service Pepper Inn has an average daily room rate (ADR) of $80.00, unit...
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1. The limited service Pepper Inn has an average daily room rate (ADR) of $80.00, unit variable cost (UVC) of $15.00, and fixed cost (FC) of $100,000. Based on the information given, what is the number of rooms required for Pepper Inn to breakeven? 2. A 150-room Hotel De Manc has an average daily room rate (ADR) of $40.00 with occupancy of 60.00% on daily basis. The hotel's annual fixed cost (FC) and variable cost (VC) are $300,000 and $476,000, respectively. According to the internal financial data, what is Hotel De Manc's occupancy percentage (occ. %) at breakeven in a given year (assume that ADR and occ. % do not change throughout the year and there are 365 days in a given year)? 3. Dilton Feyt Luxury Hotel has 100 rooms with an average daily room rate (ADR) of $95.00 and occupancy of 80.00% on daily basis. The hotel's annual fixed cost (FC) and variable cost (VC) are $500,000 and 620,000 in 2012, respectively. In 2013, the management has experienced some changes in ADR and occupancy percentage (occ. %). The hotel's ADR has increased by $20.00 and its occ. % has decreased to 70.00%. Based on the internal financial data, what is the annual decrease or increase in occ. % at breakeven in 2013 over 2012 (assume that there are 365 days in a given year and there is no change in VC in 2013)? 1. The limited service Pepper Inn has an average daily room rate (ADR) of $80.00, unit variable cost (UVC) of $15.00, and fixed cost (FC) of $100,000. Based on the information given, what is the number of rooms required for Pepper Inn to breakeven? 2. A 150-room Hotel De Manc has an average daily room rate (ADR) of $40.00 with occupancy of 60.00% on daily basis. The hotel's annual fixed cost (FC) and variable cost (VC) are $300,000 and $476,000, respectively. According to the internal financial data, what is Hotel De Manc's occupancy percentage (occ. %) at breakeven in a given year (assume that ADR and occ. % do not change throughout the year and there are 365 days in a given year)? 3. Dilton Feyt Luxury Hotel has 100 rooms with an average daily room rate (ADR) of $95.00 and occupancy of 80.00% on daily basis. The hotel's annual fixed cost (FC) and variable cost (VC) are $500,000 and 620,000 in 2012, respectively. In 2013, the management has experienced some changes in ADR and occupancy percentage (occ. %). The hotel's ADR has increased by $20.00 and its occ. % has decreased to 70.00%. Based on the internal financial data, what is the annual decrease or increase in occ. % at breakeven in 2013 over 2012 (assume that there are 365 days in a given year and there is no change in VC in 2013)?
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1 To calculate the breakeven point for Pepper Inn we need to determine the number of rooms required to cover the fixed and variable costs Breakeven po... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-1337270595
14th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
Posted Date:
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