Howard is torn about whether to fully quit his nursing job. He is contemplating work part-time and overvee the hotel part-time His salaries would grow by 3% a year over his lifetime as a nurse. He was planning on wurcha ing a home with his girlfriend in ancouver, but the, ar still working on aving 25%% of their down payment Howard's nospital has also offered to allow him to work part time for $ 30,VOv a year so that he has time to a.sist with the hotel. 'f he pursues this scenario, he has talked to a former hotel manager, Emanuel who is willing to do the lou and keep 35% or all the revenues generated. Alternatively, Emanuel wants a salary of $78,00u a year for working full-time to oversee the operations or the hotel. Howard doesn't understand the difference between a fixed cost and a variable cost. He wants information about his product and period costs and seeks to understand how much profit he is making on renting out each room. During the low seasons between mountain biking and cki season, he finds interest in the rooms diminish. He understands that if he reduces the price of the rooms, there is a possibility that demand will increase. He is curious about how low he can price the room: during this period to incentivi e increased room bookings and decreasing vacancies during these slower periods. Currently, on August 31 ^J24, H2 Hostel has $70 006 of cash in the bank. He wants you to prepare a rough quarterly budget assuming that all transactions are completed in cash. At what point will Howard need to borrow money for H : Hostel? He has spoken with the bank and can borrow money at 76 interest rate. The interest and * use of the principal payment must be paid back every year to keep the loan in good standing. Howard has been approached by a large American Company the Chariott Hotels, to purchase the hostel and reprand it as their chain of hotels for a value of $2,500,GLU. Alternatively, The Chariott Hotels are willing to give Howard and his family a total or 2,500 shares worth. _UO each to become a shareholder of Chariott : Company. Chariott Hotels has stated that it will pay dividends of $30 per share each year plus a 5% profit share of the money it makes from operating the hotels. "Ipon hearing this offer Howard : family friend Francis offered Howard $350,006 cash to invest in 50% or the hotel s shares. He said he wanted to run the company as a partnership and split the company's profits two ways between himself and Howard. Francis does not want Howard's parents involved in this transaction. Francis is a software engineer but really wants to get involved in the day-to day business operations and after doing a walkthrough of the hotel has a lot of items that he wants to change about the way the hotel looks and is operated. He keeps talking about automating check in and check out provesses and replacing housekeepers with robotic vacuum cleaners. He claims this will diminish overhead costs and improve margins by getting rid of needless staff working at the front desk and as housekeeping. Howard reels uncertain about all these changes but wants your assistance analyzing his offer. when talking to Susan, Howard learned that there has been a lot of turnovers in the cleaning and housekeeping staff. susan said they would work for 6 months and then put in their notice. before Shawn's accident, susan was looking at outsourcing the cleaning to two different local companies. Quick