E14-23

Weyden Hotel​ & Casino is situated on beautiful Lake Tahoe in Nevada. The complex includes a​ 300-room hotel, a​ casino, and a restaurant. As Weyden​'s new​ controller, your manager asks you to recommend the basis the hotel should use for allocating fixed overhead costs to the three divisions in 2017. You are presented with the following income statement information for 2016​:

You are also given the following data on the three divisions.

You are told that you may choose to allocate indirect costs based on one of the​ following: direct​ costs, floor​ space, or the number of employees. Total fixed overhead costs for 2016 were $14,630,000.

You are in charge of a manufacturing firm that is contracted to manufacture molds for producing jewelry for a leading retail store. Your firm did a market assessment last year for 200k to determine what is involved in producing the molds, and have received a total of 100k over the past two years in contract work similar to this. This new contract that you just signed pays you to produce 50 simple jewelry designs, and 5 complex jewelry designs. Your internal costs to do designs are: 518.2 in material for each mold (simple or complex) 198.48 in labor costs for each simple mold $523.1 in labor costs for each complex mold A fixed overhead cost of $200 per mold for the simple designs and $500 per mold for the complex designs In addition, the complex molds require an artist who you have to hire for $113.52 per hour to process the molds. You can assume that the average complex part requires 10 hours of labor per mold. If the contract pays you 100k for this, what is the net profit of the contract? Type this answer in the box below. If you repeat this operation each year and your costs stay the same (i.e. as above) for 5 years, but the contract price increases by 10k per year, what is the present worth of this situation over the 5 years if your cost of capital is 5%?

Quantitative Methods in BUSN

Solve this problem using Excel Solver

1. Devos Inc. is building a hotel. It will have 4 kinds of rooms: suites where customers can smoke, suites that are non-smoking, budget rooms where the customers can smoke, and budget rooms that are non-smoking. When we build the hotel, we need to plan for how many rooms of each type we should have. The following are requirements for the hotel:

1. We want to figure out how many rooms of each type to build based on maximizing revenue if we fill up the hotel. We expect to charge $190 for a suite that is non-smoking and $140 for a budget room that is non-smoking. Smoking room customers for both suites and budget rooms will have to pay an additional $20 per night.
2. We can spend up to $7,500,000 on construction of our hotel. The cost to build a non-smoking budget room is $12,000. The cost to build a non-smoking suite is $15,000. It is $3,000 additional for a smoking room of either type for smoke detectors and sprinklers.
3. We require that the number of budget rooms be at least 1.5 times the number of suites, but no more than 3 the number of suites.
4. There needs to be at least 80 suites, but no more than 200.
5. Industry trends recommend that smoking rooms should be less than 50% of the non-smoking room and in addition, we require our builder gives us at least 4 smoking rooms.

Answer the following using your Solver answers:

1. How many of each room type should be built, and what would the revenue be for a night when our hotel was fully booked?
2. Without re-running Solver, what happens to our revenue if we get an additional $1,500,000 for building? Explain in words how you got this answer without re-running solver. Over what amount of construction costs can you use this procedure?
3. Over what range of room price can our budget non-smoking rooms vary over for us to get the same answer for the quantity of each type of room?

Summary In this lab, you write a while loop that uses a sentinel value to control a loop in a C++ program that has been provided. You also write the statements that make up the body of the loop. The source code file already contains the necessary variable declarations and output statements. Each theater patron enters a value from 0 to 4 indicating the number of stars the patron awards to the Guide’s featured movie of the week. The program executes continuously until the theater manager enters a negative number to quit. At the end of the program, you should display the average star rating for the movie. Instructions Ensure the source code file named MovieGuide.cpp is open in your code editor. Write the while loop using a sentinel value to control the loop, and write the statements that make up the body of the loop. The output statements within the loop have already been written for you. Ensure you include the calculations to compute the average rating. Execute the program by clicking the Run button. Input the following: 0, 3, 4, 4, 1, 1, 2, -1 Ensure the average output is correct.

this is the prewritten code:

// MovieGuide.cpp - This program allows each theater patron to enter a value from 0 to 4

// indicating the number of stars that the patron awards to the Guide's featured movie of the

// week. The program executes continuously until the theater manager enters a negative number to

// quit. At the end of the program, the average star rating for the movie is displayed.  

#include <iostream>

#include <string>

using namespace std;

int main()

{

   // Declare and initialize variables.

   double numStars;            // star rating.

   double averageStars;    // average star rating.

   double totalStars = 0;    // total of star ratings.

   int numPatrons = 0;           // keep track of number of patrons

   // This is the work done in the housekeeping() function

   // Get input.

   cout << "Enter rating for featured movie: ";

   cin >> numStars;

   // This is the work done in the detailLoop() function

   // Write while loop here    

   // This is the work done in the endOfJob() function

   cout << "Average Star Value: " << averageStars << endl;

   return 0;

} // End of main()

PROBLEM

In the Hotel management domain, we have the following concepts:
Hotel Hotel chain Hotel room      
Reservation Hilton Hilton San Diego Bayfront
Meeting room Ballroom Guest Room
Catering Service Internet Service       TV Service
Guest Parking Service       Item on bill      

You are asked to design a model, using a UML class diagram to relate the abovementioned concepts:

Correctly use UML notations for relations such as generalization, association, aggregation, composition. Be careful to distinguish objects from classes.

You may introduce additional concepts into the picture to make your model more appropriate.
For each Class in your diagram, you should define at least one attribute and one operation.

Use multiplicity whenever appropriate.

Note that if you are not sure about a concept, you should do research on the problem domain.

Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator. Data on operations and costs for March follow:

Required:

Compute the predetermined overhead rate assuming that Tiger Furnishings uses direct labor-hours to allocate overhead costs. (Round your answer to 2 decimal places.)

Over the past six months, Six Flags conducted a marketing study on improving their park experience. The study cost $3.00 million and the results suggested that Six Flags add a kid's only roller coaster.

Suppose that Six Flags decides to build a new roller coaster for the upcoming operating season. The depreciable equipment for the roller coaster will cost $50.00 million and an additional $5.00 million to install. The equipment will be depreciated straight-line over 20 years.

The marketing team at Six Flags expects the coaster to increase attendance at the park by 5%. This translates to 110,199.00 more visitors at an average ticket price of $39.00. Expenses for these visitors are about 11.00% of sales.

There is no impact on working capital. The average visitor spends $20.00 on park merchandise and concessions. The after-tax operating margin on these side effects is 38.00%. The tax rate facing the firm is 38.00%, while the cost of capital is 9.00%.

What is the project cash flow for year 0? (answer in terms of MILLIONS)

What is the project cash flow for year 1? (express answer in millions)

What is the NPV of this coaster project if Six Flags will evaluate it over a 20-year period? (Six Flags expects the first year project cash flow to grow at 5% per year, going forward)
(Express answer in millions)

Pacific Hotels operates a centralized call center for the reservation needs of its hotels. Costs associated with use of the center are charged to the hotel group (luxury, resort, standard, and budget) based on the length of time of calls made (time usage). Idle time of the reservation agents, time spent on calls in which no reservation is made, and the fixed cost of the equipment are allocated based on the number of reservations made in each group. Due to recent increased competition in the hotel industry, the company has decided that it is necessary to better allocate its costs in order to price its services competitively and profitably. During the most recent period for which data are available, the use of the call center for each hotel group was as follows: Division Time Usage(thousands of minutes) Number of Reservations (thousands) Luxury 220 104 Resort 110 143 Standard 440 273 Budget 330 780 During this period, the cost of the call center amounted to $870,000 for personnel and $660,000 for equipment and other costs.

Required: a. Determine the allocation to each of the divisions using the following:

1. A single rate based on time used. (Do not round intermediate calculations.)

2. Dual rates based on time used (for personnel costs) and number of reservations (for equipment and other cost). (Do not round intermediate calculations.)

Pacific Hotels operates a centralized call center for the reservation needs of its hotels. Costs associated with use of the center are charged to the hotel group (luxury, resort, standard, and budget) based on the length of time of calls made (time usage). Idle time of the reservation agents, time spent on calls in which no reservation is made, and the fixed cost of the equipment are allocated based on the number of reservations made in each group. Due to recent increased competition in the hotel industry, the company has decided that it is necessary to better allocate its costs in order to price its services competitively and profitably. During the most recent period for which data are available, the use of the call center for each hotel group was as follows:

During this period, the cost of the call center amounted to $890,000 for personnel and $630,000 for equipment and other costs.

Required:

a. Determine the allocation to each of the divisions using the following:

1. A single rate based on time used. (Do not round intermediate calculations.)

2. Dual rates based on time used (for personnel costs) and number of reservations (for equipment and other cost). (