A 100- room hotel has an ADR of $120 per room, variable cost of $15 per room and monthly fixed cost of $200,000. The average occupancy rate is equal to 70%. Assume 30 days in a month and 360 days in a year. Find the break-even occupancy %.

A 100- room hotel has an ADR of $120 per room, variable cost of $15 per room and monthly fixed cost of $200,000. The average occupancy rate is equal to 70%. Assume 30 days in a month and 360 days in a year. Find the break-even occupancy %.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

See similar textbooks

Related questions

Q: Describe and explain with a market diagram for fire- extinguisher. Do you think the…

A: In the given scenario, we are provided with the fire extinguisher product, which needs to be…

Q: Explain Fixed–Time Period Models?

A: Fixed time period model

Q: A relatively small privately owned coal-mining company has the sales results summarized below.…

A: Allowed depreciation : Minimum of depreciation and taxable amount. Below is the calculation table-

Q: Using the following information, forecast the rooms sales for the next three months for a 750-room…

A: Forecasting helps to minimize the business risk by predicting the aspects such as demand, weather…

Q: Use the table provided below showing rooms available, rooms sold and rooms revenue for 7 properties…

A: Given data is

Q: A developer has requested your advice for the selling price per sg.m. of flats in an area of your…

A: Depending on the developer you have asked for advice on the sale price / sq.m of apartments in the…

Q: Calculate the EUAC of a company If P = 1000$, n = 10 years and i = 10%. %3D

A: ANSWER IS AS FOLLOWS:

Q: Elana is purchasing a property in Florida. After she closes, she will have fee simple ownership of…

A: The question is asking to identify the type of property that Elana is purchasing based on the given…

Q: DLSU 40,000 (COB 5,000; CCS 15%; CLA 20%; COL 5% and others) Average price per computer device…

A: Since you have posted multiple questions we will solve the first question for you as per our…

Q: How would you go about calculating the likelihood of a "super-event" or a "unique event?" What…

A: Super so one incident occur unexpectedly within a business and have the ability to destabilize the…

Q: What is the fundamental difference between exponential smoothing and a weighted moving average?

A: Forecasting is a method of predicting future events by evaluating data sets quantitatively and…

Q: Calculate five –yearly moving averages of the number of students studying in a university and short…

A: The formula for calculating the forecast of the current month using a 5-month moving average is the…

Q: The owner of Catamount Ice Cream needs to decide which size shop to rent in a new strip mall. He…

A: Given, Size of the shop Profit of ice cream (low demand) profit of ice cream ( High demand)…

Q: When the interest rates are high, Group of answer choices individuals will value placing on…

A: Market demand is described as the demand associated with a particular product and customers who are…

Q: Home price y is estimated as a function of the square footage of a house x and a dummy variable d…

A: Given: y = 118.90 +0.12x + 52.60d i.) For a house with mountain views, d = 1 For a house with…

Q: What is the EBM, if total basic employment is 128,500 and total employment is 350.000? 20) What…

A: EBM stands for Employee Base Measure, which is a measure of the number of jobs that a business or an…

Q: for managing its data processing operation: continuing with its own staff, hiring an outside vendor…

A: When the expected value of a decision alternative is turned as the sum of weigh payoffs for the…

Q: The Company has the oppotunity to introduce a new product. The sales manager believes that the firm…

A: The Net Present Value is calculated with the help of following formula. Net Present value = Present…

Q: Given the decision tree below, determine which alternative should be purchase given the probability…

A: Decision trees are great tools that help in making the right choices when it comes to choosing from…

Q: Is it necessary that a sale forecast reflect fluctuations in demand pattern for a goods and service?

A: THE ANSWER IS AS BELOW:

Q: What the best suitable model (either you adopt or propose). You will do the following: Suggest a…

A: It is a set of concepts that is the representation of a system. The model helps people understand,…

Q: A company has the following alternatives for investment. Using the incremental B/C method, determine…

A: The B/C investigation is a steady examination, even with just a single choice to consider. The…

Q: Why distribution range negative infinity to positive infinity is transformed to zero to positive…

A: The distribution range from negative infinity to positive infinity is transformed to zero to…

Q: If the mean = 20.3834 standard deviation = 101.53 1. What is the probability that daily demand…

A: Given data: Mean μ= 20.3834 Standard deviationσ = 101.53

Q: What are the significant findings/ key matters of Southwest Airlines

A: Every business takes a position in the market which customers remember it from. For example of…

Q: Edwards Machine Tools needs to purchase a new machine. The basic model is slower but costs less,…

A: Find the Calculations below: The maximum and minimum values for each model are shown in the above…

Q: 1. Sara is planning to start a new designer cloth shop. Her problem is to decide how large her shop…

A: The Laplace criterion: The Laplace criterion manages all the knowledge by assigning similar…

Q: Decision alternative Maximum Minimum Basic model $ $ Advanced model $ $ Calculate the…

A: The profit payoff table is given below, Decision alternativeLowMediumHighBasic…

Q: What is The General Electric Model ?

A: Marketing- Marketing is every activity a business engages in to draw a target market to its goods or…

Q: ABC company wants to open one, two, or three shops. The average Profit varies with the demand in…

A: Given Information:

Q: A property's annual property taxes equaled $7,560. The seller owes the buyer for 20 days of prorated…

A: The objective of this question is to calculate the amount the seller owes the buyer for 20 days of…

Q: Describe a good or service where you have worked or with which you are familiar where a breakeven…

A: Break even quantity is the quantity at which the total cost incurred in business and total revenue…

Q: A new electric power generation plant is expected to cost $42,000,000 to complete. The revenues…

A: The question is related to the Capital Budgeting. IRR is the internal rate of return is the rate…

Q: 4.00 in 1911 would be equivalent to ~$125.00 in 2023. If a person in 2023 earned $125 per week (52…

A: Given, Earnings = $125 and weeks = 52 Annual Income =total earnings × total weeks…

Q: Explain what does the simulation technique involves

A: Typically, simulation entails complicated mathematical operations that are impossible for a human to…

Question

A 100- room hotel has an ADR of $120 per room, variable cost of $15 per room and monthly fixed cost of $200,000. The average occupancy rate is equal to 70%. Assume 30 days in a month and 360 days in a year. Find the break-even occupancy %.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Similar questions

II. + James Scott is considering the possibility of opening a small outfit shop on Sta. Maria District, a few blocks from St. Green Ville College. She has located on a mall that attracts students. To open a small shop, medium sized shop, or no shop at all are her options. The market can be good, average, or bad. The probabilities for these three possibilities are 30% for good market, 50% for an average market, and 20% for bad market. The profit or loss for the said market conditions are given in the table below; ALTERNATIVE Small Shop Medium Sized Shop No Shop GOOD 150,000 200,000 0 AVERAGE 50,000 70,000 0 a) Calculate the Expected Value of Perfect Information (EVPI) b) What do you recommend? BAD -80,000 -120,000 0
kindly do solve accurately and exact with correct formuas thanks..with complete steps
a Tax Revenue ($) Refer to the above Laffer Curve diagram. Going into the sluggish U.S. economy of the early 1980s, economist Arthur Laffer and President Ronald Reagan maintained that that the economy was located at O tax rate d. O some level above tax rate b. O some level below tax rate b. O tax rate b. of Tax Rate (%)
Demonstrate the steps to solve this question: Advanced Electronics manufactures DVDs and sells them directly to retailers who typically sell them for $20. Retailers take a 40 percent margin based on the retail selling price. Advanced’s cost information is as follows:DVD package and disc €2.50/DVDRoyalties €2.25/DVDAdvertising and promotion €500,000Overhead €200,000 Calculate the break-even volume in DVD units and euros.
Select the criteria to choose the best Alternative (BUYING) Explain what would make you choose one over the other?
Required: Calculate the arithmetic mean and the geometric mean over the three-yearperiod for the investments made.
Alternative Alternative 1 Alternative 2 Alternative 3 State of Nature Outcome 1 ($) 800 500 700 0.62 Probability according to the payoff table? OEMV (Alternative 1) = $900 EMV (Alternative 3) is the highest EMV EMV (Alternative 2) = EMV (Alternative 3) EMV (Alternative 1) is the highest EMV Outcome 2 ($) 1000 1200 900 0.38 Which of the following statements is correct