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?  

A). Suppose Travel and Leisure reported the average hotel price in Miami, Florida, was $153.57 per night in 2019. Assume the population standard deviation is $26.86 and that a random sample of 30 hotels was selected. Calculate the standard error of the mean.

B). According to the US Labor Department, the average hourly wage for private-sector production and non-supervisory workers was $20.04 in February 2013. Assume the standard deviation for this population is $6.00 per hour. A random sample of 35 workers from this group was selected. What is the standard error of the mean?

C). According to the US Labor Department, the average hourly wage for private-sector production and non-supervisory workers was $20.04 in February 2013. Assume the standard deviation for this population is $6.00 per hour. A random sample of 35 workers from this group was selected. What is the probability that the mean for this sample is less than $19.00?

D). According to the US Labor Department, the average hourly wage for private-sector production and non-supervisory workers was $20.04 in February 2013. Assume the standard deviation for this population is $6.00 per hour. A random sample of 35 workers from this group was selected. What is the probability that the mean for this sample is more than $20.84??

How would we interpret the probability calculated in the questions D?

E). According to the US Labor Department, the average hourly wage for private-sector production and non-supervisory workers was $20.04 in February 2013. Assume the standard deviation for this population is $6.00 per hour. A random sample of 35 workers from this group was selected. What is the probability that the mean for this sample is exactly $20.00?

1-Younger, Inc. manufactures recliners for the hotel industry. It has two products, the Heater and the Massager, and total overhead is $3,160,000. The company plans to manufacture 400 Heaters and 100 Massagers this year. In manufacturing the recliners, the company must perform 600 material moves for the Heater and 400 for the Massager; it processes 900 purchase orders for the Heater and 700 for the Massager; and the company’s employees work 1,400 direct labor hours on the Heater product and 3,400 on the Massager. Younger’s total material handling costs are $2,000,000 and its total processing costs are $1,160,000. Using ABC, how much overhead would be assigned to the Heater product? $1,852,500

Answer:

2-Baxter Accounting Services estimates for next year revenues of $3,000,000, direct labor of $600,000, and overhead of $1,050,000. Under traditional costing, what is overhead rate is applied to audit jobs? 175% of direct labor

Answer:

3-Gant Accounting performs two types of services, Audit and Tax. Gant’s overhead costs consist of computer support, $300,000; and legal support, $150,000. Information on the two services is:

                                                              Audit                                       Tax         

Direct labor cost                                         $50,000                                  $100,000

CPU minutes                                                 40,000                                      10,000

Legal hours used                                               200                                          800

What is overhead applied to audit services using traditional costing? $150,000

What is overhead applied to tax services using traditional costing? $300,000

What is overhead applied to audit services using activity-based costing? $270,000.

What is overhead applied to tax services using activity-based costing? $180,000.

Gant Accounting performs tax services for Cathy Lane. Direct labor cost is $1,200; 600 CPU minutes were used; and 1 legal hour was used. What is the total cost of the Lane job using activity-based costing? $4,950

Answer:

The Fairmont Hotel in San Francisco needs to replace its air conditioning system. There are two alternatives, both of which can do the job equally well:

The relevant discount rate is 10% and the marginal tax rate is 35%.

What is the operating cash flow for AC 1 per year?
What is the equivalent annual cost for AC 1 (in absolute terms)?
What is the operating cash flow for AC 2 per year?
What is the equivalent annual cost for AC 2 (in absolute terms)?

1- Assume that visitors of a hotel on average pay $20 for minibar per night per room, with a standard deviation of $3. Assume further that minibar expenses are normally distributed.
a- What percentage of rooms are expected to pay more than $25 per night, i.e. P(x > 25)
b- What percentage of rooms are expected to pay more than $40 per night, i.e. P( x > 40)?
c- What percentage of rooms are expected to pay less than $12 per night, i.e. P( x < 12)?
d- What percentage of rooms are expected to pay between $18 and $24, i.e. P(18 < x < 24)?
e- What percentage of rooms are expected to pay between $16 and $19, i.e. P (16 < x < 19)?