7.9. The 100 room hotel has three types of rooms with the rates and sales shown below. Determine the annual occupancy and revenue required to generate an annual after tax profit of $120,000. The fixed costs average $21,000 per month. The tax rate is 25%. ADR Unit Sales % Singles $ 45 50% 30% 90 Double 55 183.40 Triples 65 20% 325 The cost of preparing each room is $17 per occupied room.

7.9. The 100 room hotel has three types of rooms with the rates and sales shown below. Determine the annual occupancy and revenue required to generate an annual after tax profit of $120,000. The fixed costs average $21,000 per month. The tax rate is 25%. ADR Unit Sales % Singles $ 45 50% 30% 90 Double 55 183.40 Triples 65 20% 325 The cost of preparing each room is $17 per occupied room.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 16E

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