Question

In: Accounting

The Tower Hotel has two operating departments: Rooms and F&B. 69% of the hotel’s total revenue...

The Tower Hotel has two operating departments: Rooms and F&B. 69% of the hotel’s total revenue is earned from room sales and the remaining revenue is earned from F&B sales. Rooms department’s contribution margin ratio is 65% and F&B department’s contribution margin ratio is 54%. If the fixed cost of the hotel is $411,206, and the management is targeting a before-tax profit of $146,476, what is the required sales revenue? (Rounded to whole numbers)

Solutions

Expert Solution

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

The Hotel has two operating departments. Rooms and F&B. 70% of the hotel's total revenue is...
The Hotel has two operating departments. Rooms and F&B. 70% of the hotel's total revenue is earned from room sales and 30% of the total revenue is earned from F&B sales. Rooms department's contribution margin ratio is 60% and F&B department's contribution margin ratio is 50%. If the fixed cost of the hotel is $400,000, and the management is targeting a before -tax profit of $150,000, what is the required sales revenue? (Rounded to whole numbers) A.$964,912 B.$795,230 C.$1,234,502 D.$701,754
Let's assume A Hotel has 900 rooms. The total fix costs for thehotel on any...
Let's assume A Hotel has 900 rooms. The total fix costs for the hotel on any given night are 22350.The variable costs per rooms is 43. assume the average daily rate for hotel last night is 90. How many room have been sold be break-even last night? What percent of occupancy should have made to be break-even last night?
Is there a difference between the means of the total of rooms per hotel in Crete...
Is there a difference between the means of the total of rooms per hotel in Crete and Southern Aegean Islands? Answer your question by calculating an appropriate, symmetric, 95% confidence interval using a Z statistic and equal standard deviations in the two populations. Explain your findings. REGION ID 1= Crete 2=Southern Aegean Islands 3=Ionian Islands Total_Rooms Region_ID 412 1 313 1 265 1 204 1 172 1 133 1 127 1 322 1 241 1 172 1 121 1 70...
Is there a difference between the means of the total of rooms per hotel in Crete...
Is there a difference between the means of the total of rooms per hotel in Crete and Southern Aegean Islands? Answer your question by calculating an appropriate, symmetric, 95% confidence interval using a Z statistic and equal standard deviations in the two populations. Explain your findings REGION ID 1= Crete 2=Southern Aegean Islands 3=Ionian Islands Total_Rooms Region_ID 412 1 313 1 265 1 204 1 172 1 133 1 127 1 322 1 241 1 172 1 121 1 70...
suppose that a hotel has 100 rooms and the hotel is accepting overbooking anticipating some cancellations....
suppose that a hotel has 100 rooms and the hotel is accepting overbooking anticipating some cancellations. The probability for cancellation is 0.07. a) What is the probability that somoen who made a reservation will be turned away if this hotel has allowed for 110 resevations? b. 105 reservation c. why did the answer to part b go down
Q4 Hotel California has 160 rooms. The hotel has an ample low-fare demand at the room...
Q4 Hotel California has 160 rooms. The hotel has an ample low-fare demand at the room rate of $200 per night, but the demand from the high-fare class which pays $450 per night on average, is uncertain. Table below shows the number of high-fare rooms that were booked during the past 30 days. How many rooms should Hotel California protect for high-fare customers to maximize its expected revenue? (6 points) Number of high-fare rooms Frequency 0 5 1 3 2...
A hotel has 200 rooms and charges two different room rates: rL =$100/ night for...
A hotel has 200 rooms and charges two different room rates: rL = $100/ night for discount fares and rH = $500/ night targeting business travelers. Demand for the discounted rooms exceeds the 200 room hotel capacity.A. What is the Co (overage cost), in $?B.What is the Cu, underage cost, in $?C. What is the critical ratio (round to two digits)?D. Assuming the demand for high fare rooms has a Normal distribution with mean =50 and standard deviation =15, how...
Avila Hotel has 300 rooms and charges $120 per room. The hotel estimates that the demand...
Avila Hotel has 300 rooms and charges $120 per room. The hotel estimates that the demand for the rooms follows a uniform distribution between 270 and 330 each day. Reservations may be canceled by 6pm with no penalty. The hotel estimates that 3% of the reservations are canceled by 6pm. Hence, the hotel allows overbooking by 20 room (the hotel allows up to 320 customers to make reservation). When more customers arrive than can be handled (e.g., more than 300...
Financial controller of the Mondavi Hotel has the following information about estimated sales revenue and operating...
Financial controller of the Mondavi Hotel has the following information about estimated sales revenue and operating expenses for September, October and November.                                     September October November Sales 820,000 845,000 880,000 Operating Expenses 295,000 310,000 330,000 The controller knows that cash sales are 30% of total sales and remaining sales are on credit. For the collection of credit sales, 50% are collected in the month of sales while the remaining 50% is collected in the following month. Mondavi...
Ada Hotel sells two room tpes: standard rooms and deluxe rooms. Average daily rate (ADR) and...
Ada Hotel sells two room tpes: standard rooms and deluxe rooms. Average daily rate (ADR) and variable costs (VC) of the two room types are provided in the table below: (Hint: Treat two room types as two different products.)                                                 ADR ($)   Variable Cost ($)               Standard rooms    394.50   256.43               Deluxe rooms   631.20   366.10                                     ...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT