please help with question # 6 and 9

Clipboard Font e styles Filter Alignment Select Number Styles N171 X for Editing C D E F G Choice Hotels has contracted with a mid-size furniture manufacturer for the production of guestroom furniture for three models of guest rooms: the standard guest room, Junior Suite, and Presidential Suite. 3 4 The Standard Guest Room comes with basic furniture, bathroom plan, and amenities. It sells for $140,000 to franchise hotels Choice Hotels Sales, Production, and Cost Informatie Standard Guest Room Type Room Junior Suite Presidential Suite Volume 150 110 2 5 Price $140,000 $240,000 $1,050,000 Unit costs Direct $30,000 $92,000 $310.000 materials Direct labor $54.000 $85,000 S640,000 The Junior Suite model is larger and includes an enhanced furniture selection, upgraded bathroom fixtures, more comfortable bedding. The guest room is considered an upgrade from the standard guestroom model. The Junior Suite sells for $240,000 to franchise hotels. Manufacturing $30,000 $30,000 $30.000 The Presidential Suite model is a custom-made guest room with floors and walls constructed from specialty wood. The drapes are made from the traditional flax-based canvass. It has the look and feel of a room in the White House, with modern comforts and security. The Presidential Suite sells for $1,050,000 to franchise hotels. Workers who build the Presidential Suite are specialized craftsmen. They earn twice the hourly rate of those working on the Standard Guest Room and Junior Suite models. The labor rate is fully burdened to include benefits. 9 overhead Total unit cost S114.000 S207.000 $980,000 10 Most of Choice Hotels' guest room sales come from the Standard Guest Room and the Junior Suite, but sales of the Presidential Suite model have been growing. The company's sales, production, and cost information for last year is provided to the right. Unit gross $26,000 $33.000 $70,000 profit Direct labor hours 1.200 1,300 5.940 Rate per hour $45.00 $65.38 S107.74 Instructions Income Statement Balance Sheet Cash Flow Budget and F... Cost and Investing O Type here to search Font Merge & Center - $ -% 171 Alignment Conditional Format as Formatting Table Delete Call Styles Number hd Format 15 16 3,389,053.26/25 = 135,562.13 135,562.13 + 310,000+ 640,000 = 1,085,562.13 USD 18 6. What price should Choice Hotels charge for the Presidential Suite? 79 Choice Hotels should charge (sell) the Presidential Suite for 110,497.24 USD. Since the costs are $1,085,562 you will lose a little over $970.000 on each suite sold. This price of both the standard room and the Junior suite. 7. Assume that the Presidential Suite has the same profit margin as the standard guest room. What should its selling price be? Show all calculations Standard Guest Room 125 Price = 140,000 126 Less: 127 Direct Materials - 30,000 728 Direct Labor = 54,000 129 Equals: 130 Gross Profit= 56,000 131 Gross Profit Margin = 56,000/140.000 = 0.4 Correct to here for the STANDARD roo3 132 The net profit margin is the price of $140,000 minus direct labor, minus direct materials minus allocated overhead (53.087.782/25 133 Net Profit Margin = 0.6 134 New Sales Price = 56.000/0.6 = 93.333.33 USD This is not correct Divide $56,000 but.4 and get the same $140.000 for the price of a standardow de This is unusual but an excellent way to look at it. Yes the gross profit margin is 40% and that is without allocation. 40% mot 60% e Budget and F... Now lets find the price for the Presidential Suite to get a gross profit margin of 40% Costs are Direct labor and Direct materials are added and that fotal is $950,000 Instructions Income Statement Balance Sheet Cash Flow Cost and Investing @ @ L e Clipboard Font e styles Filter Alignment Select Number Styles N171 X for Editing C D E F G Choice Hotels has contracted with a mid-size furniture manufacturer for the production of guestroom furniture for three models of guest rooms: the standard guest room, Junior Suite, and Presidential Suite. 3 4 The Standard Guest Room comes with basic furniture, bathroom plan, and amenities. It sells for $140,000 to franchise hotels Choice Hotels Sales, Production, and Cost Informatie Standard Guest Room Type Room Junior Suite Presidential Suite Volume 150 110 2 5 Price $140,000 $240,000 $1,050,000 Unit costs Direct $30,000 $92,000 $310.000 materials Direct labor $54.000 $85,000 S640,000 The Junior Suite model is larger and includes an enhanced furniture selection, upgraded bathroom fixtures, more comfortable bedding. The guest room is considered an upgrade from the standard guestroom model. The Junior Suite sells for $240,000 to franchise hotels. Manufacturing $30,000 $30,000 $30.000 The Presidential Suite model is a custom-made guest room with floors and walls constructed from specialty wood. The drapes are made from the traditional flax-based canvass. It has the look and feel of a room in the White House, with modern comforts and security. The Presidential Suite sells for $1,050,000 to franchise hotels. Workers who build the Presidential Suite are specialized craftsmen. They earn twice the hourly rate of those working on the Standard Guest Room and Junior Suite models. The labor rate is fully burdened to include benefits. 9 overhead Total unit cost S114.000 S207.000 $980,000 10 Most of Choice Hotels' guest room sales come from the Standard Guest Room and the Junior Suite, but sales of the Presidential Suite model have been growing. The company's sales, production, and cost information for last year is provided to the right. Unit gross $26,000 $33.000 $70,000 profit Direct labor hours 1.200 1,300 5.940 Rate per hour $45.00 $65.38 S107.74 Instructions Income Statement Balance Sheet Cash Flow Budget and F... Cost and Investing O Type here to search Font Merge & Center - $ -% 171 Alignment Conditional Format as Formatting Table Delete Call Styles Number hd Format 15 16 3,389,053.26/25 = 135,562.13 135,562.13 + 310,000+ 640,000 = 1,085,562.13 USD 18 6. What price should Choice Hotels charge for the Presidential Suite? 79 Choice Hotels should charge (sell) the Presidential Suite for 110,497.24 USD. Since the costs are $1,085,562 you will lose a little over $970.000 on each suite sold. This price of both the standard room and the Junior suite. 7. Assume that the Presidential Suite has the same profit margin as the standard guest room. What should its selling price be? Show all calculations Standard Guest Room 125 Price = 140,000 126 Less: 127 Direct Materials - 30,000 728 Direct Labor = 54,000 129 Equals: 130 Gross Profit= 56,000 131 Gross Profit Margin = 56,000/140.000 = 0.4 Correct to here for the STANDARD roo3 132 The net profit margin is the price of $140,000 minus direct labor, minus direct materials minus allocated overhead (53.087.782/25 133 Net Profit Margin = 0.6 134 New Sales Price = 56.000/0.6 = 93.333.33 USD This is not correct Divide $56,000 but.4 and get the same $140.000 for the price of a standardow de This is unusual but an excellent way to look at it. Yes the gross profit margin is 40% and that is without allocation. 40% mot 60% e Budget and F... Now lets find the price for the Presidential Suite to get a gross profit margin of 40% Costs are Direct labor and Direct materials are added and that fotal is $950,000 Instructions Income Statement Balance Sheet Cash Flow Cost and Investing @ @ L e