You are planning to open a new hotel. You expect to sell 21,000 rooms, give or receive 8%. The expected variable cost per room is $10 and the total expected fixed cost is $480,000. Cost estimates can range from plus or minus 5%. The depreciation expense is $140,000. You expect to sell your rooms at an average rate of $100, which can vary between plus or minus 10%. What is your net income in the worst case scenario?

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To calculate the net income in the worstcase scenario we need to calculate the minimum revenue and m... View the full answer