Read the given information carefully, and provide your answer to the following questions. Since the same...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Read the given information carefully, and provide your answer to the following questions. Since the same set of information will be continuously used for many questions that follow, it is recommended to prepare the complete set of the structure on a separate piece of paper. The owner of a local motel asked you to help him set up his budget with the following information. Its monthly Fixed Cost amount is $180,000, while its Variable Cost is $25 per room sold. Due to the seasonality of the business, the room rate ranges from $90 to much lower price depending on the number of expected guests. As a slow month is approaching, the owner will reduce his ADR to $75 to sell 6,000 rooms. However, the Variable Cost per room will remain the same due to the predetermined labor schedule. Using the information provided, complete the Pro Forma Income Statements (Operating Budget); and provide your answer to the question below. (If the data shows broken on your screen, please use Zoom-in/out function to have it displayed correctly. Or you also may need to expand it to the full-screen mode.) Slow month (6,000 rooms to sell @ lowered ADR of $75) Vertical Analysis (%) Revenues: _(a)- XXXXXX Variable Cost ($25 per room): _(b) _(h)__ Contribution Margin: _(c)_ (i)_ Fixed Cost: -_(d) ЕВT: _(e)_ _(k)__ Tax (30%) XXXXXX Net Income: (g)_ (1)_ Provide your answer to the amount of (c: Contribution Margin). (Do not put "$" or "" in your answer. Just put the number. If you answer is $1,000,000 then put 1000000. If your answer is negative, put "-" as in -1000000) Read the given information carefully, and provide your answer to the following questions. Since the same set of information will be continuously used for many questions that follow, it is recommended to prepare the complete set of the structure on a separate piece of paper. The owner of a local motel asked you to help him set up his budget with the following information. Its monthly Fixed Cost amount is $180,000, while its Variable Cost is $25 per room sold. Due to the seasonality of the business, the room rate ranges from $90 to much lower price depending on the number of expected guests. As a slow month is approaching, the owner will reduce his ADR to $75 to sell 6,000 rooms. However, the Variable Cost per room will remain the same due to the predetermined labor schedule. Using the information provided, complete the Pro Forma Income Statements (Operating Budget); and provide your answer to the question below. (If the data shows broken on your screen, please use Zoom-in/out function to have it displayed correctly. Or you also may need to expand it to the full-screen mode.) Slow month (6,000 rooms to sell @ lowered ADR of $75) Vertical Analysis (%) Revenues: _(a)- XXXXXX Variable Cost ($25 per room): _(b) _(h)__ Contribution Margin: _(c)_ (i)_ Fixed Cost: -_(d) ЕВT: _(e)_ _(k)__ Tax (30%) XXXXXX Net Income: (g)_ (1)_ Provide your answer to the amount of (c: Contribution Margin). (Do not put "$" or "" in your answer. Just put the number. If you answer is $1,000,000 then put 1000000. If your answer is negative, put "-" as in -1000000)
Expert Answer:
Answer rating: 100% (QA)
Slow Month 6000 rooms to sell lowered ADR of 75 450000 150000 ... View the full answer
Related Book For
Organic Chemistry
ISBN: 978-1118133576
11th edition
Authors: Graham Solomons, Craig Fryhle, Scott Snyder
Posted Date:
Students also viewed these accounting questions
-
Your brother has asked you to help him with choosing an investment. He has $7,800 to invest today for a period of two years. You identify a bank CD that pays an interest rate of 0.0500 annually with...
-
You have just prepared pro forma income statements and balance sheets for your company for the next three years. Describe three procedures you might perform to check the reasonableness of your...
-
Use Dynastatics' pro forma income statements and balance sheet from problem 32(a) to assess the cash flows for each forecast year. a. What is the capital expenditure each year? b. Start the statement...
-
What are two important limitations of the Heckscher- Ohlin theory?
-
In an article about the cost of health care, Money magazine reported that a visit to a hospital emergency room for something as simple as a sore throat has a mean cost of $328 (Money, January 2009)....
-
In Problems 5962, write each system as a matrix equation and solve using the inverse coefficient matrix. Use a graphing calculator or computer to perform the necessary calculations. x1 + 8x2 + 7x3 =...
-
Define toughness and brittleness.
-
The Croc Co. is considering a new milling machine from among three alternatives: All machines have a life of 10 years, and MARR = 15%. Using incremental rate of return analysis, which alternative, if...
-
On January 1 , 2 0 2 2 , Cargo Airlines Inc. ( CAI ) ( uses IFRS and has a December 3 1 year - end ) issued $ 5 , 0 0 0 , 0 0 0 of 4 % bonds which pay interest on June 3 0 and December 3 1 , and...
-
Spencer Duck (SSN 000-22-1111) is single and his eight-year-old son, Mitch, lives with him nine months of the year in a rented condominium at 321 Hickory Drive in Ames, Iowa. Mitch lives with his...
-
Medium Plc purchased a plant at a cost of Rs.100 Mn on 1 April 2011.At the date of acquisition it was decided to depreciate this asset over a period of five years with no residual value. The...
-
The trust stable analysis pattern can be applied and extended to any domain (T/F).
-
What is the difference between inheritance and delegation? Why is delegation considered better than inheritance? Explain with the help of an example.
-
What are some of the industrial applications of this pattern? Consider the practical aspects of usage.
-
List any four advantages of modeling dignity by using stability model that are not discussed in this chapter.
-
A particle that has mass \(m\) and charge \(q\) enters a uniform magnetic field of magnitude \(B\). The initial velocity \(v\) of the particle forms an angle of \(30^{\circ}\) with the magnetic...
-
Question (1) Stanley's Farm purchases a new electric generator from Power Supply Inc. The price paid by Stanley's Farm was $80,000 after benefitting from a preferential customer discount of $5,000....
-
2. In the circuit given in Figure 2, i,(t) = 5.67cos(5t)A and v (t) = 70.71 cos(5t 60) V a) Find the equivalent load impedance. State whether the load is inductive or capacitive. b) Calculate the...
-
Write equations showing the Lewis acid-base reaction that takes place when: (a) Methanol (CH3OH) reacts with BF3. (b) Chloromethane (CH3Cl) reacts with AlCl3. (c) Dimethyl ether (CH3OCH3) reacts with...
-
CH3CH2SH + CH3O- A (contains sulfur) + B C + H2O D + E (which is inorganic) (a) Given the above sequence of reactions, draw structures for A through E. (b) Rewrite the reaction sequence, showing all...
-
(a) Using reactions studied in this chapter, show steps by which this alkyne could be converted to the seven-membered ring homolog of the product obtained in Problem 7.44(b). (b) Could the homologous...
-
In 2023, an article in the Economist noted that the value of the Pakistani rupee had weakened against the U.S. dollar. a. When the rupee weakens against the U.S. dollar, does it take more rupees to...
-
During the second quarter of 2020, real inventories declined by $274 billion, by far the largest decline on record. During the third quarter of 2020, real GDP increased by 35 percent, by far the...
-
An article in the Wall Street Journal in early 2021 reported that the economy contracted 3.5 percent last year, the largest decline since just after World War II. The article also reported that the...
Study smarter with the SolutionInn App