Costing Models

You work for XYZ trucking and your boss has asked you to figure out how much the firm should charge a new customer to make a full Truckload delivery and make a 15% profit. The firm knows that it will find a backhaul customer, so you only need to worry about the cost for the move.

The shipment consist of 400 boxes weighing 100 pounds each, and measuring 4 cubic feet each. The trailers that your company uses can carry 46,000 pounds and have a volume of 3,600 cubic feet.

You calculate that it will take 4 hours to drive from your terminal to the customer’s factory, wait for the truck to be loaded and return to your terminal. The distance between your terminal and your customer’s factory is 35 miles.

Your line haul driver will then take the truck to the consignee and deliver the boxes. The total distance from your terminal to the consignee is 900 miles and will take the driver 30 hours. Once at the consignees it will take 4.5 hours to offload the truck. Then the driver will go to the XYZ trucking terminal in the same city, which is 45 miles away.

What would you recommend to your boss that the price should be set per cwt to complete this move?

(Make sure to show your calculations)

The equipment cost data is as follows:

Equipment Cost Data                                   

Equipment Purchase Price                          

Line-haul tractors     $100,000                   

Trailers           $ 38,000                    53-foot dry van

Depreciation                          

Tractors                                 4 year straight line

Trailers                                  7 year straight line

Interest                                  

Tractors                                  4% APR for 4 years

Trailers                                   4% APR for 7 years

Fuel                             

Per Gallon      $  3.60                        

Line-haul tractors                             6 miles per gallon

Labor Cost                              

Line-haul drivers      $   0.47                       per mile

PUD operation drivers         $ 21.00                       per hour

Miscellaneous                                    

Insurance cost           $  0.056                      per mile

Maintenance cost      $  0.130                      per mile

Billing cost      $   3.00                       per freight bill

Administrative overhead     15%                of total cost

Equipment available for use 365 days, 24 hours per day = 8,760 hours per year.

PLEASE SHOW ALL WORK SO I CAN UNDERSTAND HOW TO DO THIS. THANK YOU SO MUCH FOR THE HELP!

PROGRAM LANGUAGE IN C NOT C# or C++

KEEP IT SIMPLE EVEN IF IT IS REDUNDANT PLEASE.

Problem: Driving

Function driving():

Write a function driving(), that updates the odometer and fuel gauge of a car. The function will take in a reference to the variables storing the odometer and fuel gauge readings, along with a double representing the miles per gallon (mpg) the car gets and the number of miles the driver intends to go. The function should update the odometer and fuel gauge readings, accordingly. If the number of miles is greater than the user can go with the fuel he has left, then simply have the car drive until empty and update the odometer accordingly. The prototype for the function is below:

void driving(double* odomPtr, double* fuelPtr, double mpg, double distance);

Note that, you are not allowed to change the prototype of the function.

The return type of the function has to be void.

Also, there should not be any printf() in the the driving function.

main function:

In the main function, at first take the odometer reading, fuel gauge reading, and miles per gallon (mpg) as input.

Then keep taking distance to drive as input until the fuel gauge indicates 0 fuel. After taking the distance to drive, call the driving function with the proper parameters to get update about odometer and fuel and display the update. Display them up to two decimal places.

At the end display the message "No more fuel!"

Sample Input/Output 1:

Enter odometer reading, fuel gauge reading and mpg: 8000 13.5 25

Enter the distance you want to drive: 200

Current reading Odometer = 8200.00, fuel = 5.50

Enter the distance you want to drive: 100

Current reading Odometer = 8300.00, fuel = 1.50

Enter the distance you want to drive: 500

Current reading Odometer = 8337.50, fuel = 0.00

No more fuel!

Sample Input/output 2:

Enter odometer reading, fuel gauge reading and mpg: 90000 2.5 13.5

Enter the distance you want to drive: 500

Current reading Odometer = 90033.75, fuel = 0.00

No more fuel!

Rubric: 3 points

Writing the function with the specification: 1.5 points [changing the specification will result in 0]

Writing the main function with the specification: 1.5 points

Penalty:

Not passing each test case: -0.75 (total -1.5 for 2 test cases)

Bad indented code: -0.75

First, BICA is considering the purchase of the Empty Arms hotel. Next year's NOI and cash flow is expected to be $2,000,000 and BIC's economic forecast of market supply and demand and vacancy levels indicated they will continue to be in balance. As a result NOI should increase by 1.5 percent each year based upon expected capital improvements, and BIC believes they should earn 9% total return on the investment.

What is the estimated value of the property?

What cap rate should be found from recently sold properties that are comparable to Empty Arms? NOTE how the cap rate reflects the growth in NOI.

Should they purchase this investment if the negotiated asking price is $27M?

Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. The profit per night for each type of room and rental class is as follows:

Type I rooms do not have wireless Internet access and are not available for the Business rental class.

Round Tree's management makes a forecast of the demand by rental class for each night in the future. A linear programming model developed to maximize profit is used to determine how many reservations to accept for each rental class. The demand forecast for a particular night is 140 rentals in the Super Saver class, 60 rentals in the Deluxe class, and 40 rentals in the Business class. Round Tree has 125 Type I rooms and 135 Type II rooms.

1. Use linear programming to determine how many reservations to accept in each rental class and how the reservations should be allocated to room types.
   

   Variable	# of reservations
   SuperSaver rentals allocated to room type I
   SuperSaver rentals allocated to room type II
   Deluxe rentals allocated to room type I
   Deluxe rentals allocated to room type II
   Business rentals allocated to room type II

   
   Is the demand by any rental class not satisfied?

Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. The profit per night for each type of room and rental class is as follows: Rental Class Super Saver Deluxe Business Type I $30 $35 -- Room Type II $20 $30 $40 Type I rooms do not have Internet access and are not available for the Business rental class. Round Tree’s management makes a forecast of the demand by rental class for each night in the future. A linear programming model developed to maximize profit is used to determine how many reservations to accept for each rental class. The demand forecast for a particular night is 130 rentals in the Super Saver class, 60 rentals in the Deluxe class, and 50 rentals in the Business class. Round Tree has 100 Type I rooms and 120 Type II rooms.

Use linear programming to determine how many reservations to accept in each rental class and how the reservations should be allocated to room types. Summarize the model in algebraic form by defining the decision variables, the objective function and all the constraints.

Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. The profit per night for each type of room and rental class is as follows: Rental Class Super Saver Deluxe Business Type I $30 $35 -- Room Type II $20 $30 $40 Type I rooms do not have Internet access and are not available for the Business rental class. Round Tree’s management makes a forecast of the demand by rental class for each night in the future. A linear programming model developed to maximize profit is used to determine how many reservations to accept for each rental class. The demand forecast for a particular night is 130 rentals in the Super Saver class, 60 rentals in the Deluxe class, and 50 rentals in the Business class. Round Tree has 100 Type I rooms and 120 Type II rooms. Use linear programming to determine how many reservations to accept in each rental class and how the reservations should be allocated to room types. Summarize the model in algebraic form by defining the decision variables, the objective function and all the constraints. PLEASE DO NOT USE EXCEL TO SOLVE.

Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. The profit per night for each type of room and rental class is as follows:

Rental Class

Room Super Saver Deluxe    Business

Type I    $32 $43    —

Type II $17 $35 $39

Type I rooms do not have wireless Internet access and are not available for the Business rental class.

Round Tree's management makes a forecast of the demand by rental class for each night in the future. A linear programming model developed to maximize profit is used to determine how many reservations to accept for each rental class. The demand forecast for a particular night is 120 rentals in the Super Saver class, 70 rentals in the Deluxe class, and 55 rentals in the Business class. Round Tree has 105 Type I rooms and 120 Type II rooms.

Use linear programming to determine how many reservations to accept in each rental class and how the reservations should be allocated to room types.

Variable# of reservations

Supersaver rentals allocated to room type I ?

Supersaver rentals allocated to room type II ?

Deluxe rentals allocated to room type I ?

Deluxe rentals allocated to room type II ?

Business rentals allocated to room type II ?

Is the demand by any rental class not satisfied?
Explain.
How many reservations can be accommodated in each rental class?

Rental Class# of reservations

Supersaver ?

Deluxe ?

Business ?

Management is considering offering a free breakfast to anyone upgrading from a Super Saver reservation to Deluxe class. If the cost of the breakfast to Round Tree is $5, should this incentive be offered?

With a little work, an unused office area could be converted to a rental room. If the conversion cost is the same for both types of rooms, would you recommend converting the office to a Type I or a Type II room?

Why?

Could the linear programming model be modified to plan for the allocation of rental demand for the next night?

What information would be needed and how would the model change?

Successful hotel managers must have personality characteristics often thought of as feminine (such as "compassionate") as well as those often thought of as masculine (such as "forceful"). The Bem Sex-Role Inventory (BSRI) is a personality test that gives separate ratings for female and male stereotypes, both on a scale of 1 to 7. A sample of 148 male general managers of three-star and four-star hotels had mean BSRI femininity score x = 5.29. The mean score for the general male population is μ = 5.19. Before you trust your results, you would like more information about the data. What facts would you most like to know? (Select all that apply.)

1- Whether the chosen general managers are an SRS of the population.

2- Whether the margin of error takes into account the nonresponse rate.

3- What is the significance level?

4- Whether there are outliers in the sample.

Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. The profit per night for each type of room and rental class is as follows:

Round Tree's management makes a forecast of the demand by rental class for each night in the future. A linear programming model developed to maximize profit is used to determine how many reservations to accept for each rental class. The demand forecast for a particular night is 150 rentals in the Super Saver class, 55 in the Deluxe class, and 40 in the Business class. Since these are the forecasted demands, Round Tree will take no more than these amounts of each reservation for each rental class. Round Tree has a limited number of each type of room. There are 100 Type I rooms and 110 Type II rooms.

Group Exercise #7

The tourist industry is subject to enormous seasonal variation.   A hotel in Bermuda has recorded its occupancy rate for each quarter over a 5-year period.    These data are shown in the following table:

1. Calculate the seasonal indices for each quarter in order to measure seasonal variation.     Also, include the Trend Line Equation. (Hint:   Because the regression line yt = β0 + β1t    represents trend, it follows that the time series divided by the predicted values produces ytyt = S_t X R_tà seasonal & random variation.   And, because there is no cyclical effect, use this method to compute seasonal indices.)

2. What can you infer from the Seasonal Indices?

3. Deseasonalize the occupancy rates and assess.   (Hint:   Graphically compare the original and adjusted data sets.   Accordingly, provide data-supported inference/s.)

4. Forecast each quarter’s occupancy rate for 2000.

5. As an alternative to calculating and using seasonal indices to measure seasonal variations, indicator variables can be used in a multiple regression model.   Accordingly, use indicator variables and regression analysis to forecast hotel occupancy in 2000.   How does this compare to the forecast produced by using seasonal indices?