1. How many room-days are needed for the hotel to achieve breakeven point? What is the percentage occupancy at breakeven? What is the daily number of rooms occupied on average at breakeven?
2. What is the Operating income before tax if the hotel operates at 60% of capacity for the year?
3. How many room-days are needed for the hotel to achieve $2,500,000 Operating income before tax? What is the percentage occupancy at that level of activity?
4. How many room-days are needed for the hotel to achieve $2,500,000 Net income after tax? What is the percentage occupancy at that level of activity?
5. Answer question 4 above assuming that management needs to discount the average room rate to $120.00 per night
6. Based on the original budget, create an example demonstrating that the DOL (degree of operating leverage) computation works.

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AutoSave On) оп File Paste X O Clipboard Home Home 92 Page 1 of 2 172 words H Insert Draw Calibri Light BIU x, x² B Font Design 11 A A Aa AB»E• 5• 5 ¶ A. A. Type here to search ✔ Assignment #4 - Word Layout References Mailings Review == Revenue Variable Costs Contribution Margin Fixed Costs Operating Income before Tax Income Taxes Paragraph Styles Below is the 2020 budgeted income statement and CVP data for Four Winds Hotel - Phoenix, a 600-room 4-star hotel in central Phoenix. Net Income After Tax Degrees of Operating Leverage (DOL) Average daily room-day rate Average variable cost per room-day Fixed cost per year Tax rate Number of room-days Percent occupancy Room-day capacity Search O View Help AaBbCcDc AaBbCcDe AaBbC AaBbcc AaB 1 Normal 1 No Spac... Heading 1 Heading 2 Title The Four Winds Hotel - Phoenix Profitability Analysis $15,600,000 $130.00 100.0% 5,400,000 $45.00 $10,200,000 $85.00 9,200,000 $1,000,000 210,000 $790,000 10.2 e $130.00 $45.00 $9,200,000 21.0% 120,000 54.8% 219,000 34.6% 65.4% $35,000,000 $30,000,000 $25,000,000 520,000,000 $15,000,000 $10,000,000 $5,000,000 3. 40,000 000 GOOD 116.0 Percent Occupancy CVP Analysis 120,000 ☎ T 180.000 140 000 54.8% 130,000 140.000 000 het 180,000 GAFOCT V S Hannah Khan HK 225.000 Find Replace Select Editing Focus 8² Dictate 3 √x Share Sensitivity Editor Voice Sensitivity Editor Comments Ja X 12:13 AM 6/1/2020 K 100% E 122 AutoSave On) оп File Paste X O Clipboard Home Home 92 Page 1 of 2 172 words H Insert Draw Calibri Light BIU x, x² B Font Design 11 A A Aa AB»E• 5• 5 ¶ A. A. Type here to search ✔ Assignment #4 - Word Layout References Mailings Review == Revenue Variable Costs Contribution Margin Fixed Costs Operating Income before Tax Income Taxes Paragraph Styles Below is the 2020 budgeted income statement and CVP data for Four Winds Hotel - Phoenix, a 600-room 4-star hotel in central Phoenix. Net Income After Tax Degrees of Operating Leverage (DOL) Average daily room-day rate Average variable cost per room-day Fixed cost per year Tax rate Number of room-days Percent occupancy Room-day capacity Search O View Help AaBbCcDc AaBbCcDe AaBbC AaBbcc AaB 1 Normal 1 No Spac... Heading 1 Heading 2 Title The Four Winds Hotel - Phoenix Profitability Analysis $15,600,000 $130.00 100.0% 5,400,000 $45.00 $10,200,000 $85.00 9,200,000 $1,000,000 210,000 $790,000 10.2 e $130.00 $45.00 $9,200,000 21.0% 120,000 54.8% 219,000 34.6% 65.4% $35,000,000 $30,000,000 $25,000,000 520,000,000 $15,000,000 $10,000,000 $5,000,000 3. 40,000 000 GOOD 116.0 Percent Occupancy CVP Analysis 120,000 ☎ T 180.000 140 000 54.8% 130,000 140.000 000 het 180,000 GAFOCT V S Hannah Khan HK 225.000 Find Replace Select Editing Focus 8² Dictate 3 √x Share Sensitivity Editor Voice Sensitivity Editor Comments Ja X 12:13 AM 6/1/2020 K 100% E 122

Answer rating: 100% (QA)

1 roomdays needs to acheive break even Break even revenue fixed cost contribution fixed cost 9200000 ... View the full answer