The manager of a hotel is negotiating with a client the room rate that will be charged to the attendees of an assembly to be held at the hotel. In this type of activity, the organizers are responsible for obtaining a rate for the rooms that is competitive for the attendees and for a minimum number of people to stay during the activity. The cost of the rooms is paid by the attendees and is NOT included in the cost of registration paid to attend the Assembly. The organizers are responsible for paying for the food during the activities (breakfast, lunch and snack, this includes the service and other activities to support the assembly), in exchange for this they can use the conference rooms for free. The cost of the dinner is not covered in the cost of the rooms or by the organizers. The cost of the room DOES NOT include breakfast, lunch or dinner. It also does not include the cost of washing or ironing clothes. The hotel provides free internet, but does not include long distance calls as part of the room rate. The client estimates that the meeting will be attended by 200 people and that at least 10% of them will stay at the hotel because they come from abroad. The activity will take place during the hotel's off-season, so the manager understands that he will have enough rooms available to fulfill the agreement.

1. What costs do you think the hotel manager should take into account when calculating the total cost per room per night that will be charged to regular clients (assume that all rooms are the same)? DO NOT use monetary amounts, neither real nor hypothetical. Provide a list of 10 costs in the following format. It must include some costs that are specifically for the room and others of the hotel in general

2. What costs do you think the hotel manager should take into account when calculating the total cost per room per night that will be granted to those attending the meeting? Using the same list above, add a column to indicate if it is relevant or not.

3 Assembly attendees always have the option of staying at the Assembly hotel or in another nearby hotel. In addition to the costs, what other considerations or variables can the hotel manager take into account when promoting their rooms and the hotel between the registration of the Assembly? Provide a list

suppose that the hotel acts as a monopolist whose manager chooses what quantity q of rooms to offer for rent. We want to determine the hotel’s optimal choice of quantity on game days.

Consider a hotel which can supply an unlimited number of hotel rooms at the constant marginal cost c = 20 per room per night, so that the hotel’s total cost function is given by C(q) = 20q.1 Assume that demand for hotel rooms in Tallahassee takes two possible values: on game days, demand is described by the demand curve q = 100 − p, while on non-game-days demand is described by the demand curve q = 60 − 2p.

Find the hotel’s total revenue on game days as a function of its quantity choice q. (Recall that total revenue equals price times quantity, where in this case price is described by the inverse demand curve.)

(e) Assuming the hotel maximizes profit, show that it will supply quantity q = 40 on game days.

(f) What will be the hotel price on game days? And what will be the hotel’s game-day profits?

(g) Still focusing on game days, graphically illustrate the demand curve, the hotel’s marginal revenue curve, and the hotel’s marginal cost curve. Indicate the hotel’s optimal quantity and price choices on the graph.

Determine if the demand for the following products is price elastic or price inelastic, and explain your answer. i) Box of cereal sold in a grocery store ii) Gasoline as a commodity iii) Hotel rooms for people planning a vacation iv) Hotel rooms for people on business to meet an important client b) What principle do consumers follow to maximize the utility they derive while spending their money to buy the various products they need? (Minimum 50 words) c) Fill in the blanks in the following cost table for Julie's Jam Co. Assume that labor is the only variable input, the time period is one week and labor is paid $250 per week. Number of Workers Total Product Marginal Product Total Variable Cost Total Fixed Cost Total Cost Marginal Cost 1 10 $50 2 25 3 35 4 42 5 46 Determine if the demand for the following products is price elastic or price inelastic, and explain your answer. i) Box of cereal sold in a grocery store ii) Gasoline as a commodity iii) Hotel rooms for people planning a vacation iv) Hotel rooms for people on business to meet an important client b) What principle do consumers follow to maximize the utility they derive while spending their money to buy the various products they need? (Minimum 50 words) c) Fill in the blanks in the following cost table for Julie's Jam Co. Assume that labor is the only variable input, the time period is one week and labor is paid $250 per week. Number of Workers Total Product Marginal Product Total Variable Cost Total Fixed Cost Total Cost Marginal Cost 1 10 $50 2 25 3 35 4 42 5 46 Determine if the demand for the following products is price elastic or price inelastic, and explain your answer. i) Box of cereal sold in a grocery store ii) Gasoline as a commodity iii) Hotel rooms for people planning a vacation iv) Hotel rooms for people on business to meet an important client b) What principle do consumers follow to maximize the utility they derive while spending their money to buy the various products they need? (Minimum 50 words) c) Fill in the blanks in the following cost table for Julie's Jam Co. Assume that labor is the only variable input, the time period is one week and labor is paid $250 per week. Number of Workers Total Product Marginal Product Total Variable Cost Total Fixed Cost Total Cost Marginal Cost 1 10 $50 2 25 3 35 4 42 5 46 Determine if the demand for the following products is price elastic or price inelastic, and explain your answer. i) Box of cereal sold in a grocery store ii) Gasoline as a commodity iii) Hotel rooms for people planning a vacation iv) Hotel rooms for people on business to meet an important client b) What principle do consumers follow to maximize the utility they derive while spending their money to buy the various products they need? (Minimum 50 words) c) Fill in the blanks in the following cost table for Julie's Jam Co. Assume that labor is the only variable input, the time period is one week and labor is paid $250 per week. Number of Workers Total Product Marginal Product Total Variable Cost Total Fixed Cost Total Cost Marginal Cost 1 10 $50 2 25 3 35 4 42 5 46 Determine if the demand for the following products is price elastic or price inelastic, and explain your answer. i) Box of cereal sold in a grocery store ii) Gasoline as a commodity iii) Hotel rooms for people planning a vacation iv) Hotel rooms for people on business to meet an important client b) What principle do consumers follow to maximize the utility they derive while spending their money to buy the various products they need? (Minimum 50 words) c) Fill in the blanks in the following cost table for Julie's Jam Co. Assume that labor is the only variable input, the time period is one week and labor is paid $250 per week. Number of Workers Total Product Marginal Product Total Variable Cost Total Fixed Cost Total Cost Marginal Cost 1 10 $50 2 25 3 35 4 42 5 46 Determine if the demand for the following products is price elastic or price inelastic, and explain your answer. i) Box of cereal sold in a grocery store ii) Gasoline as a commodity iii) Hotel rooms for people planning a vacation iv) Hotel rooms for people on business to meet an important client b) What principle do consumers follow to maximize the utility they derive while spending their money to buy the various products they need? (Minimum 50 words) c) Fill in the blanks in the following cost table for Julie's Jam Co. Assume that labor is the only variable input, the time period is one week and labor is paid $250 per week. Number of Workers Total Product Marginal Product Total Variable Cost Total Fixed Cost Total Cost Marginal Cost 1 10 $50 2 25 3 35 4 42 5 46

5. The Gardner Theater, a community playhouse, needs to determine the lowest-cost production budget for an upcoming show. Specifically, they have to determine which set pieces to construct and which, if any, set pieces to rent from another local theater at a predetermined fee. However, the organization has only two weeks to fully construct the set before the play goes into technical rehearsals. The theater has two part-time carpenters who work up to 12 hours a week, each at $10 an hour. Additionally, the theater has a part-time scenic artist who can work 15 hours per week to paint the set and props as needed at a rate of $15 per hour. The set design requires 20 flats (walls), two hanging drops with painted scenery, and three large wooden tables (props). The number of hours required for each piece for carpentry and painting is shown below:

Flats, hanging drops, and props can also be rented at a cost of $75, $500, and $350 each, respectively. How many of each unit should be built by the theater and how many should be rented to minimize total costs?

A movie theater faces the following hourly inverse demand curves:Seniors: PS= 12 – 0.5QAdults: Pa= 19 – QThe marginal cost is constant at $1.

a.If the movie theater uses segmenting, calculate the ticket prices charged to adults and seniors.

b.How much producer surplus does the movie theater earn from segmenting?

c.Now suppose the movie theater is legally prevented from using segmenting. What price will the movie theater charge per ticket? How much producer surplus will it earn?

Teton Village, Wyoming, near Grand Teton Park and Yellowstone Park, contains shops, restaurants, and motels. The village has two peak seasons---winter, for skiing on the 10,000-foot slopes, and summer, for tourists visiting the parks. The number of visitors(in thousands) by quarter for five years can be found in Data Table Two below

1.Develop the typical seasonal pattern for Teton Village

2. Determine the seasonally adjusted number of visitors for winter 2011.

Data Table Two

Please post the answer with the work performed in excel and not just the answer, need to show work as I don't understand how to do this and would like the steps so that I can also learn it and it shows all work. You can add screenshots of the steps to find the answer in excel.

The following equation represents the weekly demand that a local theater faces.

Qd = 2000 - 25 P + 2 A,

where P represents price and A is the number of weekly advertisements.

Presently the theater advertises 125 times per week. Assuming this is the only theater in town, and its marginal cost, MC, is equal to zero,

a. Determine the profit-maximizing ticket price for the theater.

b. What is the price elasticity of its demand at this price?

c. What is the elasticity of its demand with respect to advertising?

d. Now suppose the theater increases the number of its ads to 250. Should the theater increase its price following this ad campaign? Explain.

You are the designer for a public address (PA) system to be installed for a new hotel. The hotel shall have 15 storeys, 230 rooms, one recreational floor, one car park floor, two restaurants, and two banquet rooms.

1. (a) One of the banquet rooms has dimensions 45 m (width) x 35 m (length) x 5.5 m (height). If ceiling-mounted loudspeakers of 110° coverage angle is to be installed, calculate the number of speakers required for the room. State clearly ALL your assumptions in the calculations. Draw a simple layout plan to show the locations of the loudspeakers.

Amy Richardson had been a well-paid sales manager of a major hotel chain for 15 years. Due to a hotel owner's illness, Amy was offered the opportunity to purchase a hotel near a seaside vacation area she had often visited. After obtaining a lawyer and a financial accountant to assist her, Amy did an analysis of the most recent financial statements of the hotel. Since the hotel had consistently shown a profit during the past few years, Amy thought that the price of the hotel was reasonable, so she decided to purchase the hotel. She resigned her position, obtained a loan, and purchased the hotel.

During the first year as a hotel manager, Amy received an offer from a tour operator who proposed to guarantee a considerable number of room reservations, including during the off-season. However, she turned down the offer because the tour operator asked for a 20% price reduction compared to the regular room rate. A few weeks later, she decided to shut down the restaurant, located in the main building of the hotel, in order to save expenses. With regard to general expenses, she was particularly concerned with the high room cleaning and service costs. On the sales side, although the reservations for the cheaper standard rooms were a bit sluggish, the more expensive large-size superior rooms had a very good occupancy rate of over 90%. The following year, there was a severe economic downturn and also a very bad weather season that reduced the number of guests and also caused a resulting mold situation in the hotel building that required expensive repair work. Amy ran short of cash, became emotionally distraught, and eventually had to sell the hotel at a significant loss.

Question:

Analyze Amy’s purchase decision and the subsequent events using the following key management accounting tools and concepts: Cost-Volume-Profit Analysis, Using Relevant Costs to Make Short-Term Decisions, Cost Management Using Full Costs and Budgeting. Make sure that you clearly indicate how each tool/concept could be used to explain potential management errors that Amy had made and could have helped her to improve decision-making and the financial results of the business.

Amy Richardson had been a well-paid sales manager of a major hotel chain for 15 years. Due to a hotel owner's illness, Amy was offered the opportunity to purchase a hotel near a seaside vacation area she had often visited. After obtaining a lawyer and a financial accountant to assist her, Amy did an analysis of the most recent financial statements of the hotel. Since the hotel had consistently shown a profit during the past few years, Amy thought that the price of the hotel was reasonable, so she decided to purchase the hotel. She resigned her position, obtained a loan, and purchased the hotel.

During the first year as a hotel manager, Amy received an offer from a tour operator who proposed to guarantee a considerable number of room reservations, including during the off-season. However, she turned down the offer because the tour operator asked for a 20% price reduction compared to the regular room rate. A few weeks later, she decided to shut down the restaurant, located in the main building of the hotel, in order to save expenses. With regard to general expenses, she was particularly concerned with the high room cleaning and service costs. On the sales side, although the reservations for the cheaper standard rooms were a bit sluggish, the more expensive large-size superior rooms had a very good occupancy rate of over 90%.

The following year, there was a severe economic downturn and also a very bad weather season that reduced the number of guests and also caused a resulting mold situation in the hotel building that required expensive repair work. Amy ran short of cash, became emotionally distraught, and eventually had to sell the hotel at a significant loss.

Required:

Analyze Amy’s purchase decision and the subsequent events using key management accounting tools and concepts. Make sure that you clearly indicate how each tool/concept could be used to explain potential management errors that Amy had made and could have helped her to improve decision-making and the financial results of the business.

• Introduction to Management Accounting
• Cost-Volume-Profit Analysis   
• Using Relevant Costs to Make Short-Term Decisions
• Cost Management Using Full Costs
• Budgeting