HomeSuites is a chain of all-suite, extended-stay hotel properties. The chain has 21 properties with an average of 200 rooms in each property. In year 1, the occupancy rate (the number of rooms filled divided by the number of rooms available) was 75 percent, based on a 365-day year. The average room rate was $210 for a night. The basic unit of operation is the "night," which is one room occupied for one night. The operating income for year 1 is as follows: HomeSuites Operating Income Year 1 Sales revenue Lodging $ 138,060,000 Food & beverage 39,091,500 Miscellaneous 11,497,500 Total revenues $ 188,649,000 Costs Labor $ 79,873,500 Food & beverage 22,995,000 Miscellaneous 13,797,000 Management 2,509,000 Utilities, etc. 37,800,000 Depreciation 10,500,000 Marketing 16,500,000 Other costs 3,250,000 Total costs $ 187,224,500 Operating profit $ 1,424,500 In year 1, the average fixed labor cost was $409,000 per property. The remaining labor cost was variable with respect to the number of nights. Food and beverage cost and miscellaneous cost are all variable with respect to the number of nights. Utilities and depreciation are fixed for each property. The remaining costs (management, marketing, and other costs) are fixed for the firm. At the beginning of year 2, HomeSuites will open four new properties with no change in the average number of rooms per property. The occupancy rate is expected to remain at 75 percent. Management has made the following additional assumptions for year 2: The average room rate will increase by 5 percent. Food and beverage revenues per night are expected to decline by 20 percent with no change in the cost. The labor cost (both the fixed per property and variable portion) is not expected to change. The miscellaneous cost for the room is expected to increase by 25 percent, with no change in the miscellaneous revenues per room. Utilities and depreciation costs (per property) are forecast to remain unchanged. Management costs will increase by 8 percent, and marketing costs will increase by 10 percent. Other costs are not expected to change. The managers of HomeSuites are considering different pricing strategies for year 2. Under the first strategy ("High Price"), they will work to maintain an average price of $261 per night. They realize that this will reduce demand and estimate that the occupancy rate will fall to 65.0 percent with this strategy. Under the alternative strategy ("High Occupancy"), they will work to increase the occupancy rate by lowering the average price. They estimate that with an average nightly rate of $174, they can achieve an occupancy rate of 85 percent. The current estimated profit is $139,623,405. Required: a. Prepare the budgeted income statement for year 2 if the "High Price" strategy is adopted. (Round your per unit average cost calculations to 2 decimal places.) Home Suites Operating Income Year 2 Sales Revenue Lodging Food & Bev. MISC Total Revenues Costs Labor Food & Bev. MISC Management Utilities, ECT Depreciation Marketing Other Costs Total Costs Operating Profit b. Prepare the budgeted income statement for year 2 if the "High Occupancy" strategy is adopted. Home Suites Operating Income Year 2 Sales Revenue Lodging Food & Bev. MISC Total Revenues Costs Labor Food & Bev. MISC Management Utilities, ECT Depreciation Marketing Other Costs Total Costs Operating Profit

HomeSuites is a chain of all-suite, extended-stay hotel properties. The chain has 15 properties with an average of 210 rooms in each property. In year 1, the occupancy rate (the number of rooms filled divided by the number of rooms available) was 80 percent, based on a 365-day year. The average room rate was $190 for a night. The basic unit of operation is the "night," which is one room occupied for one night.

The operating income for year 1 is as follows:

HomeSuites Operating Income Year 1 Sales revenue Lodging $ 138,020,000 Food & beverage 29,433,600 Miscellaneous 10,117,800 Total revenues $ 177,571,400 Costs Labor $ 61,263,000 Food & beverage 18,396,000 Miscellaneous 11,957,400 Management 2,505,000 Utilities, etc. 36,000,000 Depreciation 13,500,000 Marketing 10,000,000 Other costs 2,500,000 Total costs $ 156,121,400 Operating profit $ 21,450,000

In year 1, the average fixed labor cost was $405,000 per property. The remaining labor cost was variable with respect to the number of nights. Food and beverage cost and miscellaneous cost are all variable with respect to the number of nights. Utilities and depreciation are fixed for each property. The remaining costs (management, marketing, and other costs) are fixed for the firm.

At the beginning of year 2, HomeSuites will open five new properties with no change in the average number of rooms per property. The occupancy rate is expected to remain at 80 percent. Management has made the following additional assumptions for year 2:

The average room rate will increase by 10 percent.

Food and beverage revenues per night are expected to decline by 25 percent with no change in the cost.

The labor cost (both the fixed per property and variable portion) is not expected to change.

The miscellaneous cost for the room is expected to increase by 30 percent, with no change in the miscellaneous revenues per room.

Utilities and depreciation costs (per property) are forecast to remain unchanged.

Management costs will increase by 5 percent, and marketing costs will increase by 5 percent.

Other costs are not expected to change.

Required:

Prepare the budgeted income statement for year 2. (Round your per unit average cost calculations to 2 decimal places.)

Home Suites

Operating Income

Year 2

Sales Revenue

Lodging

Food and Beverage

MISC

Total Revenues

Costs

Labor

Food and Beverage

MISC

Management

Utilities, ECT

Depreciation

Marketing

Other Costs

Total Costs

Operating Profit

HomeSuites is a chain of all-suite, extended-stay hotel properties. The chain has 21 properties with an average of 200 rooms in each property. In year 1, the occupancy rate (the number of rooms filled divided by the number of rooms available) was 75 percent, based on a 365-day year. The average room rate was $210 for a night. The basic unit of operation is the "night," which is one room occupied for one night.

The operating income for year 1 is as follows:

HomeSuites Operating Income Year 1 Sales revenue Lodging $ 138,060,000 Food & beverage 39,091,500 Miscellaneous 11,497,500 Total revenues $ 188,649,000 Costs Labor $ 79,873,500 Food & beverage 22,995,000 Miscellaneous 13,797,000 Management 2,509,000 Utilities, etc. 37,800,000 Depreciation 10,500,000 Marketing 16,500,000 Other costs 3,250,000 Total costs $ 187,224,500 Operating profit $ 1,424,500

In year 1, the average fixed labor cost was $409,000 per property. The remaining labor cost was variable with respect to the number of nights. Food and beverage cost and miscellaneous cost are all variable with respect to the number of nights. Utilities and depreciation are fixed for each property. The remaining costs (management, marketing, and other costs) are fixed for the firm.

At the beginning of year 2, HomeSuites will open four new properties with no change in the average number of rooms per property. The occupancy rate is expected to remain at 75 percent. Management has made the following additional assumptions for year 2:

The average room rate will increase by 5 percent.

Food and beverage revenues per night are expected to decline by 20 percent with no change in the cost.

The labor cost (both the fixed per property and variable portion) is not expected to change.

The miscellaneous cost for the room is expected to increase by 25 percent, with no change in the miscellaneous revenues per room.

Utilities and depreciation costs (per property) are forecast to remain unchanged.

Management costs will increase by 8 percent, and marketing costs will increase by 10 percent.

Other costs are not expected to change.

The managers of HomeSuites are considering different pricing strategies for year 2. Under the first strategy ("High Price"), they will work to maintain an average price of $261 per night. They realize that this will reduce demand and estimate that the occupancy rate will fall to 65.0 percent with this strategy. Under the alternative strategy ("High Occupancy"), they will work to increase the occupancy rate by lowering the average price. They estimate that with an average nightly rate of $174, they can achieve an occupancy rate of 85 percent. The current estimated profit is $139,623,405.

Required:

a. Prepare the budgeted income statement for year 2 if the "High Price" strategy is adopted. (Round your per unit average cost calculations to 2 decimal places.)

Home Suites

Operating Income

Year 2

Sales Revenue

Lodging

Food & Bev.

MISC

Total Revenues

Costs

Labor

Food & Bev.

MISC

Management

Utilities, ECT

Depreciation

Marketing

Other Costs

Total Costs

Operating Profit

b. Prepare the budgeted income statement for year 2 if the "High Occupancy" strategy is adopted.

Home Suites

Operating Income

Year 2

Sales Revenue

Lodging

Food & Bev.

MISC

Total Revenues

Costs

Labor

Food & Bev.

MISC

Management

Utilities, ECT

Depreciation

Marketing

Other Costs

Total Costs

Operating Profit

The Ritz-Carlton Hotel Company was established by president and founding father Colgate Holmes along with four business partners in 1983. At that time, the only existing Ritz-Carlton hotel was located in Boston. By 1992, the company had opened 22 additional hotels in the United States. By 1998, the company was acquired by Marriott International. Today, Ritz-Carlton Hotels is based in Chevy Chase, Maryland, operates more than 90 luxury hotels in 30 countries and territories, and employs more than 40,000 people.

The Credo

• The Ritz-Carlton is a place where the genuine care and comfort of our guests is our highest mission.
• We pledge to provide the finest personal service and facilities for our guests, who will always enjoy a warm, relaxed, yet refined ambiance.
• The Ritz-Carlton experience enlivens the senses, instills well-being, and fulfills even the unexpressed wishes and needs of our guests.

The Motto

At the Ritz-Carlton, “We are Ladies and Gentlemen serving Ladies and Gentlemen.” This motto exemplifies the anticipatory service provided by all staff members.

Service Values

1. I build strong relationships and create Ritz-Carlton guests for life.
2. I am always responsive to the expressed and unexpressed wishes and needs of our guests.
3. I am empowered to create unique, memorable, and personal experiences for our guests.
4. I understand my role in achieving the Key Success Factors, embracing community footprints, and creating the Ritz-Carlton mystique.
5. I continually seek opportunities to innovate and improve the Ritz-Carlton experience.
6. I own and immediately resolve guest problems.
7. I create a work environment of teamwork and lateral service so that the needs of our guests and each other are met.
8. I have the opportunity to continuously learn and grow.
9. I am involved in the planning of the work that affects me.
10. I am proud of my professional appearance, language, and behavior.
11. I protect the privacy and security of our guests, my fellow employees, and the company’s confidential information and assets.
12. I am responsible for uncompromising levels of cleanliness and creating a safe and accident-free environment.

In order to ensure the effective implementation of its legendary service philosophy, the Ritz-Carlton emphasizes the importance of teamwork at all of its properties. In particular, teamwork is emphasized in service value #7—I create a work environment of teamwork and lateral service so that the needs of our guests and each other are met. Lateral service means that all Ritz-Carlton employees must support each other in realizing the hotel’s mission. Sometimes this may involve performing duties and responsibilities that are not part of their job, such as assisting a guest with his/her luggage, obtaining a bottle of shampoo or soap from housekeeping for a guest, or providing a recommendation for a good local restaurant or show to see for a guest.

The company uses a variety of practices to support lateral teamwork, including the following:

• Managers foster a culture that supports teamwork through the effective modeling of desired behaviors and recognizing those who practice lateral teamwork;
• Employees provide informal training on what their coworkers need to do to provide lateral teamwork and how they need to do it;
• Employees complete formal training on teamwork as well as participate in team-building activities;
• Employees team up with each other (e.g., concierge and the hotel’s restaurant manager) when doing so will enhance a guest’s experience;
• Managers incorporate lateral teamwork into the professional development plans of employees so that they can see how lateral teamwork can enhance their ability to grow and advance at a personal and professional level.

Discussion Questions

1. What types of groups/teams are used at the Ritz-Carlton Hotels?
2. How are roles defined in order to support teamwork at the Ritz-Carlton Hotels?
3. Evaluate the performance of teams at the Ritz-Carlton Hotels in terms of the six dimensions of a team process.
4. How does the Ritz-Carlton develop teams?

​​​​​​​LANGUAGE IS JAVA

• Part One

• A hotel salesperson enters sales in a text file. Each line contains the following, separated by semicolons:
  • The name of the client,
  • the service sold (such as Dinner, Conference, Lodging, and so on),
  • the amount of the sale,
  • and the date of that event.
• Prompt the user for data to write the file.

  Part Two

• Write a program that reads the text file as described above, and that writes a separate file for each service category, containing the entries for that category. Name the output files Dinner.txt, Conference.txt, and so on.
• Enter the name of the output file from Part One as a command line argument.

  Both Parts

• For all programs, catch and handle the Exceptions appropriately and validate the input data where needed.
• Display an error if the sales file does not exist or the format is incorrect.
• Also, create your own exception to handle "unknown transaction" exceptions.

  Samples:

  • Contents of sales.txt (file created in part one)

    John Public;Dinner;29.95;6/7/2014
    Jane Public;Conference;499.00;8/9/2014
    Abby Lawrence;Dinner;23.45;10/10/2014
    

  • Contents of Dinner.txt (file created in part two)

    John Public;Dinner;29.95;6/7/2014
    Abby Lawrence;Dinner;23.45;10/10/2014
    

  • Contents of Conference.txt (file created in part two)

    Jane Public;Conference;499.0;8/9/2014
    

Grading Criteria

• You will be graded on the following components:
• Does the program do what is required
• Is it properly documented
• Is it fully tested
• As always, remember to create a default constructor and override the toString() method for all classes.
• Is it properly designed

An existing online book retailer is considering whether to open a brick and mortar bookshop. The project is assumed to last for four years. Projected revenues and costs from the online retailer’s existing operations in each of years 1-4 are £1m and £400k, respectively. It is however estimated that the opening of the bookshop would boost both revenues and costs by 50% in each of years 1-4. The bookshop launch requires an initial investment of £400k in year 0, none of which will be recovered at the end of the project. The bookshop’s operations require an inventory of £50k in year 0, £100k in year 1, £150k in year 2, and £200k in year 3. The inventory is expected to be entirely sold in year 4. Assume that both the project and the retailer are fully financed through equity and that the retailer’s shares have a beta equal to 2. The risk free rate is 4%, the market risk premium is 3% and there are no taxes.

a. Determine the net present value of the project.

b. Assume now that the project requires the conversion of an existing property, currently owned by the retailer and valued at £1m. If rented out, the property would generate a rental income of £100k in each of years 1-4. The market value of the property is expected to stay constant during the next 4 years. Determine the net present value of the project (if necessary, you can make assumptions on what the firm would do with the property – rent out/sell - if the project were not undertaken).

c. Suppose you were told that the online retailer had a debt to equity ratio equal to one. Assuming that the beta of debt is equal to zero and that the project is still 100% equity financed, what would be the appropriate discount rate for the project?

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company’s costs:

For example, electricity costs are $1,500 per month plus $0.08 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.70 per car washed.

The actual operating results for August appear below.

Required:

Prepare a flexible budget performance report that shows the company’s revenue and spending variances and activity variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

A steel industry emits, other harmful pollutants , CO. There are 8 identical firms in this industry. Four of them are located near a city( urban area) while four of them are located in the country ( rural area) . They can install filters ( srubbers) in their exhaust to clean up part of their emissions. Their abatements costs related to CO clean up are described by MACi= 400- 8Ei, where i = 1,2,....8 . The emission of CO are locally dispersed. Due to higher population and structure density in the city , the marginal damage a unit of CO is causing in the urban area is higher than that in the rural area. More specifically these damages are described by MDu= 1.2 E and MDr=0.5 E

a. Find the units of emissions these 8 firms will emit if the CO emissions are left unregulated . How many units of emissions are released in each of the two areas

b. Find the aggregate marginal abatement cost function for each of the two area

c. What is the socially efficient level of emissions in each area and how many unit of emissions must be abated( in each area) compared to the unregulated level so that efficiency will be achieved

d. If the government sets the pollution levels at the socially efficient levels of emissions in each of the two areas, calculate the total abatement cost per firm in each of the two area

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company’s costs:

For example, electricity costs are $1,500 per month plus $0.07 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.20 per car washed.

The actual operating results for August appear below.

Required:

Prepare a flexible budget performance report that shows the company’s revenue and spending variances and activity variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company’s costs:

For example, electricity costs are $1,100 per month plus $0.06 per car washed. The company expects to wash 8,500 cars in August and to collect an average of $6.90 per car washed.

The actual operating results for August appear below.

Required:

Prepare a flexible budget performance report that shows the company’s revenue and spending variances and activity variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)