Suppose a hotel rents rooms but also has an onsite restaurant. Of the hotel's total 50,000...

Transcribed Image Text:

Suppose a hotel rents rooms but also has an onsite restaurant. Of the hotel's total 50,000 square feet, the restaurant occupies 5,000 square feet and the rooms occupy the rest. If indirect costs of $100,000 are allocated based on square footage, which of the following statements is true? Multiple Choice a $50,000 is allocated to the rooms segment. a.$5,000 is allocated to the restaurant. a $10,000 is allocated to the restaurant. a $95,000 is allocated to the rooms segment. Consider the following information for Maple Tree Hotel for 2020. Consider 365 days in a year. Average room rate $200, Number of rooms available 125, Occupancy rate 80%. Annual financial figures are as follow. Sales 7.3 MN (millions), Varaible expenses 2.3 MN, FC 4.5 MN. What is the breakeven occupancy rate for Maple Tree Hotel? Multiple Choice O O O O 75% 70% 80% 72% Craftman Inc following information for its main product Selling price per unit Costs per unit (at the normal capacity of 38,000 units): Direct material Direct labour Variable overhead Fixed overhead Sales Commission. Contribution margin ratio Breakeven sales Required: 1. Compute the contribution margin ratio and break-even sales. Margin of safety Dollars % 2. What is the margin of safety in dollars and units, and the degree of operating leverage? (Round "Degree of operating leverage" to 2 decimal places and the rest to the nearest whole number.) Degree of operating leverage $380 30 25 25 50 7.5% of sales Units Suppose a hotel rents rooms but also has an onsite restaurant. Of the hotel's total 50,000 square feet, the restaurant occupies 5,000 square feet and the rooms occupy the rest. If indirect costs of $100,000 are allocated based on square footage, which of the following statements is true? Multiple Choice a $50,000 is allocated to the rooms segment. a.$5,000 is allocated to the restaurant. a $10,000 is allocated to the restaurant. a $95,000 is allocated to the rooms segment. Consider the following information for Maple Tree Hotel for 2020. Consider 365 days in a year. Average room rate $200, Number of rooms available 125, Occupancy rate 80%. Annual financial figures are as follow. Sales 7.3 MN (millions), Varaible expenses 2.3 MN, FC 4.5 MN. What is the breakeven occupancy rate for Maple Tree Hotel? Multiple Choice O O O O 75% 70% 80% 72% Craftman Inc following information for its main product Selling price per unit Costs per unit (at the normal capacity of 38,000 units): Direct material Direct labour Variable overhead Fixed overhead Sales Commission. Contribution margin ratio Breakeven sales Required: 1. Compute the contribution margin ratio and break-even sales. Margin of safety Dollars % 2. What is the margin of safety in dollars and units, and the degree of operating leverage? (Round "Degree of operating leverage" to 2 decimal places and the rest to the nearest whole number.) Degree of operating leverage $380 30 25 25 50 7.5% of sales Units

Answer rating: 100% (QA)

Computation of indirect cost allocated to restaurant Indir... View the full answer