Question: Part A has been answered please answer part B. a.) A 190-room hotel's fixed cost is $1,000,000 per year. Its variable cost is 60% of

Part A has been answered please answer part B.

a.) A 190-room hotel's fixed cost is $1,000,000 per year. Its variable cost is 60% of revenue.

Due to renovation, this hotel only opened 300 days last year. If 60% of the revenue is from the rooms division, what is the breakeven Revenue per Available Room (RevPAR)? (Anws: 26.31)

b.) Last year, the hotel's ADR is $40. Given the same conditions in part 1, what is the breakeven occupancy rate (use percentage, such as 60%

instead of 0.6) last year?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

A.Brew-Me-Anytime Company is introducing a new coffee in its stores and must decide what price to set for the coffee beans. An estimated demand schedule for the product follows: Price One-pound units...

ACCT 2017 Homework 2: due Tuesday April 5/22, by 11:59 pm 1. These financial analysis questions refer to the 2019 Financial Statements of MARRIOTT INTERNATIONAL INC., a company that owns more than...

Problem 3 3 . 1 A 1 9 0 - room hotel's fixed cost is $ 1 , 0 0 0 , 0 0 0 per year. Its variable cost is 4 0 % of revenue. Due to renovation, this hotel only opened 3 0 0 days last year. If 7 0 % of...

The case discusses the dilemma of the CFO of PSUWC Energy LLC, an energy generating firm, who needs to present his recommendation to the company Board regarding a proposed investment in a new...

Need help with this assignment.I've attached the excel workbook that should be used to record answers and the case scenario. The case discusses the dilemma of the CFO of PSUWC Energy LLC, an energy...

PLEASE ANSWER PART B, C, AND D! PLEASE SHOW THE FORMULA SHEET, NOT JUST THE EXCEL WITH THE NUMBERS. THANK YOU Webmasters.com has developed a powerful new server that would be used for corporations'...

Question 3.1 Relevant costing This question consists of two independent parts (PART A and B) and both must be answered. PART A You are a Junior Management Accountant at Mask-it-up (Pty) Ltd, a...

PART B Kako-lako (Pty) Ltd manufactures and sells three different distinct beverages. As part of the standards and budget setting process, the capacities of the product lines have to be considered....

IMA Educational Case Journal: Case Study. Dalton Convention Center: A Beacon Or White Elephant? Case Study Questions Using Word or Excel or a combination of both, please answer the following...

Due Sunday, 11/20: Problems from Zimmerman text: 2-11, 2-44, Case 2-3, 7-7, and 7-20 Chapter Two The Nature of Costs Chapter Outline A. Opportunity Costs 1. Characteristics of Opportunity Costs 2....

Why do national income accountants compare the market value of the total outputs in various years rather than actual physical volumes of production? What problem is posed by any comparison over time...

You are going to buy a new car. The car costs $30,000. After making a 10% down payment, you will finance $27,000.You want to finance the car for 5 years.Thefirst payment will bedue one month after...

could youy give some real life practicalk theory based questions for newtons laws of motion

Hypothesis Testing of a Single Mean LCTCS Tuition: Louisiana Community And Technical College System consist of 2 community colleges across the state. I think RPCC's tuition and fees is lower than the...

C What other cultural differences might inhibit communication on a professional sports team? How does multiculturalism and globalization affect other sports?

C What ethical implications arise from approaching Meredith with the new sketch? Should the sketch be presented to the entire team at the same time? Is it fair to tempt Meredith with a juicy role in...

Recognize contingencies that may arise. For instance, Our goal is to have $4,000 in our account by the end of March, on the assumption that we have good weather for the fundraising campaign were...