Question
In: Accounting
B. Jane Botosan operates a Hostelworld in an area near Amsterdam. Depreciation on the hotel is...
B. Jane Botosan operates a Hostelworld in an area near Amsterdam. Depreciation on the hotel is $60,000 per year. Jane employs a maintenance person at an annual salary of $41,000 and a cleaning person at an annual salary of $24,000. Real estate taxes are $10,000 per year. The rooms rent at an average price of $60 per person per night including breakfast. Other costs are laundry and cleaning service at a cost of $10 per person per night and the cost of food which is $5 per person per night.
Instructions
-
DeterminethenumberofrentalsandthesalesrevenueJaneneedstobreak even using the contribution margin technique.
-
If the current level of rentals is 4,000, by what percentage can rentals decrease before Jane has to worry about having a net loss?
-
Jane is considering upgrading the breakfast service to attract more business and increase prices. This will cost an additional $3 for food costs per person per night. Jane feels she can increase the room rate to $68 per person per night. Determine the number of rentals and the sales revenue Jane needs to break even if the changes are made.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Jane Botosan operates a bed and breakfast hotel in a resort area near Lake Michigan. Depreciation...
Jane Botosan operates a bed and breakfast hotel in a resort area
near Lake Michigan. Depreciation on the hotel is $60,000 per year.
Jane employs a maintenance person at an annual salary of $32,000
and a cleaning person at an annual salary of $24,000. Real estate
taxes are $10,000 per year. The rooms rent at an average price of
$60 per person per night including breakfast. Other costs are
laundry and cleaning service at a cost of $10 per person...
Jane Botosan operates a bed and breakfast hotel in a resort area near Lake Michigan. Depreciation...
Jane Botosan operates a bed and breakfast hotel in a resort area
near Lake Michigan. Depreciation on the hotel is $60,000 per year.
Jane employs a maintenance person at an
annual salary of $41,000 and a cleaning person at an annual salary
of $24,000. Real estate taxes are $10,000 per year. The rooms rent
at an average price of $60 per person per night
including breakfast. Other costs are laundry and cleaning service
at a cost of $10 per person...
Jane Botosan operates a bed and breakfast hotel in a resort area near Lake Michigan. Depreciation...
Jane Botosan operates a bed and breakfast hotel in a resort area
near Lake Michigan. Depreciation on the hotel is $60,000 per year.
Jane employs a maintenance person at an annual salary of $41,000
and a cleaning person at an annual salary of $24,000. Real estate
taxes are $10,700 per year. The rooms rent at an average price of
$128 per person per night including breakfast. Other costs are
laundry and cleaning service at a cost of $10.7 per person...
Q1) Jane Botosan operates a bed and breakfast hotel in a resort area near Lake Michigan....
Q1) Jane Botosan operates a bed and breakfast hotel in a resort
area near Lake Michigan. Depreciation on the hotel is $60,000 per
year. Jane employs a maintenance person at an annual salary of
$41,000 and a cleaning person at an annual salary of $24,000. Real
estate taxes are $10,600 per year. The rooms rent at an average
price of $127 per person per night including breakfast. Other costs
are laundry and cleaning service at a cost of $10.6 per...
Kelly Hayes operates a bed and breakfast hotel in a beach resort area of Noosa. Depreciation...
Kelly Hayes operates a bed and breakfast hotel in a beach resort
area of Noosa. Depreciation on the hotel is $60,000 per year. Kelly
employs a maintenance person at an annual salary of $30,000 per
year and a cleaning person at an annual salary of $24,000 per year.
Rates and taxes are $10,000 per year. The rooms rent at an average
price of $50 per person per night including breakfast. Other costs
are laundry service at $4.00 per person per...
Hotel Sport is in the suburb of large metropolitan area near a sports complex that has...
Hotel Sport is in the suburb of large metropolitan area near a
sports complex that has a stadium suitable for baseball and soccer
games. The 250-room independent hotel is a select-service property
in the mid-range category. Its rate structure is simple:
Rack
$190
Weekend
$159
Low season/Government
$140
Groups (of
15+)
$130
Best available
rate
$120
Late August is traditionally a slow season in the hotel and
business picks up in September after area businesses and government
offices...
The Krasnapolski is a top-of-the-line hotel in Amsterdam, the Netherlands. Among their many services, they rent...
The Krasnapolski is a top-of-the-line hotel in Amsterdam, the
Netherlands. Among their many services, they rent bicycles to
guests. The bicycle checkout is open 24 hours per day 7 days per
week and has 50 bicycles on hand. On average, 10 guests request a
bicycle each day, arriving completely randomly at all times of the
day during the spring and summer seasons. Guests keep bicycles for
four days on average, with a standard deviation of two days.
Remember: any time...
A tourist from the US spends three nights in a hotel in Amsterdam Which statement(s) is...
A tourist from the US spends three nights in a hotel in
Amsterdam Which statement(s) is (are) true?
a. This increases GDP of the Netherlands and decreases net
exports of the US.
b. This increases GDP of the Netherlands and increase
consumption of the US.
c. This increases consumption of the US, but decreases net
exports of the US.
d. All of the above are correct
Mermaid Beach Hotel Ltd (Mermaid Hotel) operates a seaside hotel on the Sunshine Coast, providing accommodation,...
Mermaid Beach Hotel Ltd (Mermaid Hotel) operates a seaside hotel
on the Sunshine Coast, providing
accommodation, bar and restaurant facilities for tourists. Casual
and part-time wages are a major
expense item, particularly during summer, when up to an additional
30 staff members are employed.
In order to keep track of casual and part-time wages, Mermaid
Hotel’s operations manager prepares
a weekly roster (using Excel) showing:
• employee name
• employment position (e.g. bar staff)
• days and hours rostered for...
Jane Co. Inc is thinking of using either section 179 depreciation or bonus depreciation. What is...
Jane Co. Inc is thinking of using either section 179
depreciation or bonus depreciation. What is the benefit of using
bonus depreciation over section 179 depreciation.
One of following is right answer:
a. You can use bonus depreciation to create a loss.
b. You cannot use bonus depreciation to create a loss.
c. You can use bonus depreciation to off set section 179
income.
d. You can use section 179 depreciation to create a loss.
Justify your choice.
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- What are the advantages and disadvantages of having multiple suppliers for a given medical device component...
- Hal Thomas, a 30-year-old college graduate, wishes to retire at age 65. To supplement other sources...
- Allocation: Fixed and Variable Costs, Budgeted Fixed and Variable Costs Biotechtron, Inc., has two research laboratories...
- Do you think that there is still institutionalized racial discrimination in the United States today and...
- Computer Security Consider a desktop publishing system used to produce documents for various organizations. a. Give...
- Review the discussion question and answer below. Do you agree with the answer? why or why...
- For the assignment you have to do two thing Passing arguments when running the jar or...
ADVERTISEMENT