The Gold Bay Hotel is in the process of developing a master budget and Pro-forma financial statements. The beginning balance sheet for the current fiscal year is estimated to be

Gold bay Hotel Estimated Balance sheet current year

During the year the hotel expects to rent 30,000 rooms. Rooms rent for an average of $ 90 per night. The hotel expects to sell 40,000 meals during the year at an average price of $ 20 per meal. the variable cost per room rented is $ 30 and the variable cost per meal is $8. The fixed costs not including depreciation is expected to be $ 2,000,000. Depreciation is expected to be $ 500,000. The hotel also expects to refurbish the kitchen at a cost $ 200,000. Which is capitalized ( included in the facility account). Interest of the note payable is expected to be $ 50,000 and $ 100,000 of the note payable will be retired during the year. The ending accounts receivable amount is expected to be $ 40,000 and the ending account payable is expected to be $ 30,000.

Required

Prepare Pro-forma financial statement for the end of the current year.

Suppose a group of volunteers is planning on building a park near a local lake. The lake is known to contain low levels of arsenic (As). Therefore, prior to starting construction, the group decides to measure the current level of arsenic in the lake.

a) If a 15.7 cm3 sample of lake water is found to have 164.5 ng As, what is the concentration of arsenic in the sample in parts per billion (ppb), assuming that the density of the lake water is 1.00 g/cm3?

One of the volunteers suggests hiring an on-site water treatment company to remove the arsenic from the lake. The company claims their process takes 2.74 days to remove 41.90 kg of As from a water source.

b) Calculate the total mass (in kg) of arsenic in the lake that the company will have to remove if the total volume of water in the lake is 0.710 km3?

c) Based on the company\'s claim and the concentration of arsenic in the lake, how many years will it take to remove all of the arsenic from the lake, assuming that there are always 365 days in a year?

Suppose a group of volunteers is planning on building a park near a local lake. The lake is known to contain low levels of arsenic (As). Therefore, prior to starting construction, the group decides to measure the current level of arsenic in the lake.

a) If a 15.7 cm3 sample of lake water is found to have 164.5 ng As, what is the concentration of arsenic in the sample in parts per billion (ppb), assuming that the density of the lake water is 1.00 g/cm3?

One of the volunteers suggests hiring an on-site water treatment company to remove the arsenic from the lake. The company claims their process takes 2.74 days to remove 41.90 kg of As from a water source.

b) Calculate the total mass (in kg) of arsenic in the lake that the company will have to remove if the total volume of water in the lake is 0.710 km3?

c) Based on the company\'s claim and the concentration of arsenic in the lake, how many years will it take to remove all of the arsenic from the lake, assuming that there are always 365 days in a year?

An amusement park has estimated the following demand equation for the average park guest

Q=16?2P

Where Q represents the number of rides per guest and P the price per ride. The total cost of providing rides to a guest is

TC=2+0.5Q

If a one-price policy is used, how much should it charge per ride if the park wishes to maximize its profit?

What is the park's profit for each guest?

If a two-part tariff policy is used, what admission fee should the park charge to maximize its profit?

What is the park's profit for each guest?

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              
                      
                      
The Mock Hotel's fixed costs for a month is = =       252480              
Sales mix (contribution of each room type to total room revenue) of the hotel is:                      
                      
Deluxe rooms   66%                  
Standard rooms    34%                  
                      
Required:                      
Using the information provided above, answer the following questions:                      
a. What is the break-even room nights (number) for the the hotel given the sales mix of the two room packages?                      
b. What must be the room revenue for the hotel to make a profit of $50,000 a month?                      
c. If the hotel is considering an advertisement campaign for its rooms with a cost $5,000, hom much in room revenue should be generated to cover this extra cost?                      

On average, 90 patrons arrive per hour at a hotel lobby (interarrival times are exponential) waiting to check in. At present there are five clerks, and patrons wait in a single line for the first available clerk. The average time for a clerk to service a patron is three minutes (exponentially distributed). Clerks earn $10 per hour, and the hotel assesses a waiting time cost of $20 for each hour that a patron waits in line. If needed, round your answers to the nearest cent. a. Compute the expected cost per hour of the current system. $ b. The hotel is considering replacing one clerk with an Automatic Clerk Machine (ACM). Management estimates that 20% of all patrons will use an ACM. An ACM takes an average of one minute to service a patron. It costs $48 per day (one day equals eight hours) to operate an ACM. Should the hotel install the ACM? Assume that all customers who are willing to use the ACM wait in a separate queue. The hotel replace the clerk with an ACM, as the total hourly cost would to $ .

Costs that change abruptly at different levels of activity because the resources are available only in indivisible chunks are called ________.

A) mixed costs

B) variable costs

C) fixed costs

D) step costs

Answer:

A compensation plan where the sales force is paid salary plus commission is a ________.

A) purely variable cost

B) mixed cost

C) step cost

D) fixed cost

Answer:

The break-even point on the cost-volume-profit graph is where the ________.

A) total cost line intersects the net profit line

B) total cost line intersects the net loss line

C) revenue line intersects the total cost line

D) revenue line intersects the variable cost line

Answer:

Suppose a hotel has annual fixed costs applicable to its rooms of $2.0 million for its 300-room hotel. Average daily room rents are $50 per room and average variable costs are $10 for each room rented. It operates 365 days per year. If the hotel is completely full throughout the year, what is net income for one year?

A) $1,280,000

B) $2,380,000

C) $3,180,000

D) $4,380,000

Answer:

Murphy Company produces dolls. Each doll sells for $20.00. Variable costs per unit are $14.00 and total fixed costs for the period are $435,000. What is the break-even point in units?

A) 21,750

B) 31,071

C) 51,176

D) 72,500

Draw the cash flow: Your aunt Carry wants to purchase a 200K piece of equipment for her factory, operations cost will be 20K a year as well as a 80K fee at the end of year three. By year seven your aunt would be able to resell the piece of equipment for 15K

A community playhouse needs to determine the​ lowest-cost production budget for an upcoming show. They have to determine which set pieces to construction and which to rent. The organization has only two weeks to construct the set. The theater has two carpenters who work up to 12 hours a​ week, each at ​$12 an hour.​ Additionally, the theater has a scenic artist who can work 15 hours per week to paint as needed at ​$14 per hour. The set needs 20 flats​ (walls), two hanging​ drops, and three 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 ​$400 ​each, respectively. How many of each unit should be built by the theater and how many should be rented to minimize total​ cost?

The optimal integer solution is to build __ flat(s) and rent __ ​flat(s); build __hanging​ drop(s) and rent __hanging​ drop(s); build __prop(s) and rent__ prop(s). This solution gives the ▼(minimum, maximum) ​cost, which is ​$__.