Hanson Inn is a 96-room hotel located near the airport and convention center in Louisville, Kentucky. When a convention or a special event is in town, Hanson increases its normal room rates and takes reservations based on a revenue management system. The Classic Corvette Owners Association scheduled its annual convention in Louisville for the first weekend in June. Hanson Inn agreed to make at least 50% of its rooms available for convention attendees at a special convention rate in order to be listed as a recommended hotel for the convention. Although the majority of attendees at the annual meeting typically request a Friday and Saturday two-night package, some attendees may select a Friday night only or a Saturday night only reservation. Customers not attending the convention may also request a Friday and Saturday two-night package, or make a Friday night only or Saturday night only reservation. Thus, six types of reservations are possible: convention customers/two-night package; convention customers/Friday night only; convention customers/Saturday night only; regular customers/two-night package; regular customers/Friday night only; and regular customers/Saturday night only.

The cost for each type of reservation is shown here:

The anticipated demand for each type of reservation is as follows:

Hanson Inn would like to determine how many rooms to make available for each type of reservation in order to maximize total revenue.

1. Define the decision variables and state the objective function. Round your answers to the nearest whole number.
   

   Let	CT = number of convention two-night rooms
   	CF = number of convention Friday only rooms
   	CS = number of convention Saturday only rooms
   	RT = number of regular two-night rooms
   	RF = number of regular Friday only rooms
   	RS = number of regular Saturday only room

   CT

   +

   CF

   +

   CS

   +

   RT

   +

   RF

   +

   RS

2. Formulate a linear programming model for this revenue management application. Round your answers to the nearest whole number. If the constant is "1" it must be entered in the box.
   

   CT

   +

   CF

   +

   CS

   +

   RT

   +

   RF

   +

   RS

   S.T.

   1)	CT
   2)	CF
   3)	CS
   4)	RT
   5)	RF
   6)	RS
   7)	CT	+	CF
   8)	CT	+	CS
   9)	CT	+	CF	+	RT	+	RF
   10)	CT	+	CS	+	RT	+	RS
   11)	CT,	CF,	CS,	RT,	RF,	RS			0

3. What are the optimal allocation and the anticipated total revenue? Round your answers to the nearest whole number.
   

   Variable	Value
   CT
   CF
   CS
   RT
   RF
   RS

   
   Total Revenue = $  
   
4. Suppose that one week before the convention the number of regular customers/Saturday night only rooms that were made available sell out. If another nonconvention customer calls and requests a Saturday night only room, what is the value of accepting this additional reservation? Round your answer to the nearest dollar.
   
   The dual value for constraint 10 shows an added profit of $   if this additional reservation is accepted.

A hotel has 100 rooms. On any given night, it takes up to 105 reservations, because of the possibility of no-shows. Past records indicate that the number of daily reservations is uniformly distributed over the range 96-105. That is, each integer number in this range has a probability of 10%, of showing up. The no-shows are represented by the distribution in the table below.

Based on your thirty simulations, determine the following measures of performance of this booking system: the expected number of rooms used per night and the percentage of nights when more than 100 rooms are claimed. (Show your simulations and any other information used in the analysis. Don’t send any worksheet.)

Scenario: Chief Complaint: Fever , AIDS. 40 year old white male resides at the hotel and lives on social security disability; diagnosed with AIDS, end stage, addiction, and agoraphobia presents with fever X2 weeks, no thermometer available, diarrhea daily. He tends to miss appointments because of his extreme anxiety in public places. He has not been on antiretroviral therapy due to his inability to regularly take medications. He is not in contact with case management, but there is a special hospice for homeless people with AIDS and perhaps it might be time to consider a referral for more supportive services.

Vital signs: 100/70 64 18 99.8 BMI:17   Gen: thin white male

skin: dry and flacking multiple nevi ruddy complexion, red flaky, rash on naso/ labial folds, and scalp + DANDROFF

HEENT:  Poor definition, gengevitus, shotty lymph nodes posterior / Anterior cervical.

Question: How would APRN (Nurse practitioner) prepare for home visit? Explore the practical concerns, the equipment APRN need to bring, and goals for the patient’s care.

Question: What might you want as Nurse practitioner to know from the case management and supportive services team?

Question: What specific things would you assess as Nurse practitioner at this visit?

Question: What are the essential elements of the history and physical today?

Question: What is your assessment as Nurse Practitioner ?

Question: What is your plan?

HomeSuites is a chain of all-suite, extended-stay hotel properties. The chain has 20 properties with an average of 150 rooms in each property. In year 1, the occupancy rate (the number of rooms filled divided by the number of rooms available) was 70 percent, based on a 365-day year. The average room rate was $215 for a night. The basic unit of operation is the “night,” which is one room occupied for one night.

The operating income for year 1 is as follows:

In year 1, the average fixed labor cost was $416,000 per property. The remaining labor cost was variable with respect to the number of nights. Food and beverage cost and miscellaneous cost are all variable with respect to the number of nights. Utilities and depreciation are fixed for each property. The remaining costs (management, marketing, and other costs) are fixed for the firm.

At the beginning of year 2, HomeSuites will open six new properties with no change in the average number of rooms per property. The occupancy rate is expected to remain at 70 percent. Management has made the following additional assumptions for year 2:

The average room rate will increase by 8 percent.

Food and beverage revenues per night are expected to decline by 15 percent with no change in the cost.

The labor cost (both the fixed per property and variable portion) is not expected to change.

The miscellaneous cost for the room is expected to increase by 20 percent, with no change in the miscellaneous revenues per room.

Utilities and depreciation costs (per property) are forecast to remain unchanged.

Management costs will increase by 6 percent, and marketing costs will increase by 8 percent.

Other costs are not expected to change.

The managers of HomeSuites are considering different pricing strategies for year 2. Under the first strategy (“High Price”), they will work to maintain an average price of $285 per night. They realize that this will reduce demand and estimate that the occupancy rate will fall to 60.0 percent with this strategy. Under the alternative strategy (“High Occupancy”), they will work to increase the occupancy rate by lowering the average price. They estimate that with an average nightly rate of $194, they can achieve an occupancy rate of 80 percent. The current estimated profit is $75,358,035.

Required:

a. Prepare a budgeted income statement for year 2 if the “High Price” strategy is adopted. (Round your per unit average cost calculations to 2 decimal places.)

b. Prepare a budgeted income statement for year 2 if the “High Occupancy” strategy is adopted. (Round your per unit average cost calculations to 2 decimal places.)

c. Which is the correct pricing strategy for year 2.

A hotel has 8 air conditioners that each have a pre- determined area liberation rate. The carbon dioxide (COx) emission rates (in ppm) are measured for each. The pollution rate is expected to be a linear function of the area liberation rate.

(a) Write out the equation of the regression line. Interpret the slope and intercept in the context of this problem. Do they make sense? Include a scatter plot of the data with the correct regression line added.

(b) Test the hypothesis that the linear relationships exist between the predictor and response variable (ANOVA, t-test for β1, t-test for ρ, or a confidence interval for β1).

(c) What is the R2 for the SLR you have obtained? What does the value mean? Use it to evaluate the linear model.

(d) Plot the standardized residuals against the independent variable. What can you say about the regression using this graph? (HINT: Are there outliers? Does it seem reasonable to claim the data has a linear fit?)

HomeSuites is a chain of all-suite, extended-stay hotel properties. The chain has 24 properties with an average of 200 rooms in each property. In year 1, the occupancy rate (the number of rooms filled divided by the number of rooms available) was 80 percent, based on a 365-day year. The average room rate was $220 for a night. The basic unit of operation is the “night,” which is one room occupied for one night.

The operating income for year 1 is as follows.

In year 1, the average fixed labor cost was $420,000 per property. The remaining labor cost was variable with respect to the number of nights. Food and beverage cost and miscellaneous cost are all variable with respect to the number of nights. Utilities and depreciation are fixed for each property. The remaining costs (management, marketing, and other costs) are fixed for the firm.

At the beginning of year 2, HomeSuites will open four new properties with no change in the average number of rooms per property. The occupancy rate is expected to remain at 80 percent. Management has made the following additional assumptions for year 2.

• The average room rate will increase by 10 percent.
• Food and beverage revenues per night are expected to decline by 25 percent with no change in the cost.
• The labor cost (both the fixed per property and variable portion) is not expected to change.
• The miscellaneous cost for the room is expected to increase by 30 percent, with no change in the miscellaneous revenues per room.
• Utilities and depreciation costs (per property) are forecast to remain unchanged.
• Management costs will increase by 5 percent, and marketing costs will increase by 5 percent.
• Other costs are not expected to change.

The managers of HomeSuites are considering different pricing strategies for year 2. Under the first strategy (“High Price”), they will work to maintain an average price of $230 per night. They realize that this will reduce demand and estimate that the occupancy rate will fall to 70.0 percent with this strategy. Under the alternative strategy (“High Occupancy”), they will work to increase the occupancy rate by lowering the average price. They estimate that with an average nightly rate of $190, they can achieve an occupancy rate of 90 percent. The current estimated profit is $259,025,200.

Required:

a. Prepare a budgeted income statement for year 2 if the “High Price” strategy is adopted.

b. Prepare a budgeted income statement for year 2 if the “High Occupancy” strategy is adopted.

c. Which is the correct pricing strategy for year 2.

The Sandhill Hotel opened for business on May 1, 2022. Here is its trial balance before adjustment on May 31.

Other data:

Prepare an adjusted trial balance on May 31.

The restaurant at the Hotel Galaxy offers two choices for breakfast: an all-you-can-eat buffet and an a la carte option, where diners can order from the menu. The buffet option has a budgeted meal price of $44. The a la carte option has a budgeted average price of $33 for a meal. The restaurant manager expects that 40 percent of its diners will order the buffet option. The buffet option has a budgeted variable cost of $24 and the a la carte option averages $19 per meal in budgeted variable cost. The manager estimates that 2,600 people will order a meal in any month.

For July, the restaurant served a total of 2,400 meals, including 940 buffet options. Total revenues were $42,300 for buffet meals and $52,560 for the a la carte meals.

Required:

a. Compute the activity variance for the restaurant for July.

b. Compute the mix and quantity variances for July.

The Ivanhoe Hotel opened for business on May 1, 2022. Here is its trial balance before adjustment on May 31.

Other data:

A. Prepare a ledger using T-accounts. Enter the trial balance amounts and post the adjusting entries. (Post entries in the order of journal entries presented in the previous question.)

B. Prepare an income statement for the month of May.

C. Prepare a retained earnings statement for the month of May.

D. Prepare a classified balance sheet at May 31. (List current assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings and Equipment .)

E. Identify which accounts should be closed on May 31.

Britton Carter is interested in building a new hotel in Queenstown, New Zealand. His company estimates that the hotel would require an initial investment of $20 million, would produce a positive cash flow of $6.5 million a year and at the end of each of the next 15 years can be salvaged (after tax) $10 million at t=15. The company recognizes that the cash flow could in fact be much higher or lower depending on whether that area becomes a popular tourist area. It is believed that at the end of two years, a 15% chance exists in the tourism will not be spreading in that direction and yearly cash flow will be only $2.5 million for 15 years within after-tax salvage value of $7 million and 85% chance exists that tourism will be heading that way in the yearly cash flow will be $8.5 million for 15 years with an after-tax salvage value of $18 million. If the firm waits two years, the initial investment will be $25 million. The project's cost of capital is 12%. Should the firm proceed with the project today or should it wait two years before deciding? (Round NPVS to the nearest dollar) choose the closest answer

A. wait two years, the NPV of building today is $2,745,595 worst in the NPV for waiting two years.

B. Build it now since the NPV of building today is $2,38,340 better than the NPV for waiting two years

C. Wait two years the NPV of building today is $3,652,072 worst in the NPV for waiting two years

D. Build it now since the NPV of building today is $4122163 better than the NPV of waiting two years

E. Build it now since the NPV a building today is $1,580,882 better than the MPV for waiting two years