E5-9 The Palmer Acres Inn is trying to determine its break-even point during its off-peak- season. The inn has 50 rooms that it rents at $60 a night. Operating costs are as follows.
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- 2. Patterson Co. values, advertises and sells residential property on behalf of the customers. The co. has been in business for only a short time and is preparing a cash budget for the first four months of 2016. Expected sales of residential properties are as follows: 2016 Year Month Unit Sold 2015 December 10 January 10 2016 February 15 2016 Page 8 of 10 March 25 2016 April 30 The average price of each property is $180,000 and Patterson Co. charges a fee of 3% of the value of each property sold. Patterson Co. receives 1% in the month of sales and the remaining 2% in the month after sales. The Company has nine employees who are paid on a monthly basis. The average salary per employees is $35,000 per year. If more than 20 properties are sold in a given month, each employee is paid in that month a bonus of $140 for each additional property sold. Variable expenses are incurred at the rate of 0.5% of the value of each property sold and these expenses are paid in the month of sales. Fixed…A-7Jake's Roof Repair has provided the following data concerning its costs: Fixed Cost Cost per per Month $ 21,200 Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Repair-Hour $15.00 $ 7.50 $ 0.50 $ 1.60 $ 2,770 $ 5,710 $ 4,680 $ 3,870 Rent Administrative expenses $ 0.40 For example, wages and salaries should be $21,200 plus $15.00 per repair-hour. The company expected to work 2,800 repair-hours in May, but actually worked 2,700 repair-hours. The company expects its sales to be $44.00 per repair-hour. Required: Compute the company's activity variances for May. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
- The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented for one day. The hotel's business is highly seasonal, with peaks occurring during the ski season and in the summer. Month January February March April May June July August September October November December Occupancy- Days 2,630 3,130 3,640 1,090 1,770 1,730 4,440 3,860 2,170 1,210 1,790 2,930 Electrical Costs $ 10,783 $ 12,833 $ 13,583 $ 4,469 Variable cost of electricity Fixed cost of electricity $ 7,257 $ 7,093 $ 14,854 $ 13,815 $8,897 $ 4,961 $ 7,339 $ 12,013 Required: 1. Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day. Do not round your intermediate calculations. Round your Variable cost answer to 2 decimal places and Fixed cost element answer to nearest whole dollar amount.) per occupancy-day per…1.what is the cost pf lobor required to operate the production line per month 2.If you require astorage area of 600 sq.ft and with an average rent $12 per sq.ft/month what is the estimated cost of rent per month for the production line including the storage area.(Rounded to the nearest $1000). 3.how many operators do you need for the production line. 4. what is the cost of buying and installing the production line.Cullumber provides shuttle service between 4 hotels near a medical center and an international airport. Cullumber uses two 10- passenger vans to offer 12 round trips per day. A recent month's activity in the form of a cost-volume-profit income statement is as follows. Sales (1,370 passengers) Variable costs Fuel Tolls and parking Maintenance Contribution margin Fixed costs Salaries Depreciation (straight-line) Insurance Net income Break-even point Break-even point $3,836 $ 2,359 655 12,300 1,100 1,000 $34,250 6,850 Calculate the break-even point in (1) sales dollars and (2) number of passengers. 27,400 14,400 $13,000 passengers
- In April of 2021, Best Speaker Company expects to sell 470 bluetooth speaker units. Expenses are as follows: Cost of goods sold is P178 per unit Shipping costs are P31 per unit Miscellaneous costs are P10 per unit Salaries are P80,000 per month Rent is P20,000 per month Utilities are P10,000 per month Calculate the following for April 2021: A. Variable Operating Expense B. Fixed Operating Expense C. Total Operating ExpenseConsiderations other than cost in pricing decisions. Happy Times Hotel operates a 100-room hotel near a busy amusement park. During June, a 30-day month, Happy Times Hotel experiences a 70% occupancy rate from Monday evening through Thursday evening (weeknights). On Friday through Sunday evenings (weekend nights), however, occupancy increases to 90%. (There were 18 weeknights and 12 weekend nights in June.) Happy Times Hotel charges $80 per night for a suite. The company recently hired Gina Davis to manage the hotel to increase the hotel’s protability. The following information relates to Happy Times Hotel’s costs:Grand Garden is a hotel with 240 suites. Its regular suite price is $250 per night per suite. The hotel's total cost per night is $180 per suite and consists of the following Variable cost Fixed cost Total cost per night per suite The hotel manager receives an offer to hold the local Bikers' Club meeting at the hotel in March, which is the hotel's slow season with a low occupancy rate per night. The Bikers' Club would reserve 220 suites for one night if the hotel accepts a price of $148 per night. $ 140 40 $ 180 (a) What is the contribution margin from this special offer? (b) Should the Bikers' Club offer be accepted or rejected? Contribution margin from Bikers Club special offer: Revenues from special offer Variable costs Should the Bikers' Club offer be accepted or rejected? accepted
- The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented for one day. The hotel’s business is highly seasonal, with peaks occurring during the ski season and in the summer. Month Occupancy-Days Electrical Costs January 3,250 $ 9,660 February 3,470 $ 10,185 March 3,660 $ 10,360 April 1,760 $ 6,160 May 1,350 $ 4,725 June 4,350 $ 11,575 July 3,280 $ 9,765 August 1,610 $ 5,635 September 700 $ 2,450 October 1,300 $ 4,550 November 1,640 $ 5,740 December 2,220 $ 7,770 Required: 1. Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day. (Do not round your intermediate calculations. Round your Variable cost answer to 2 decimal places and Fixed cost element answer to nearest whole dollar amount.)City Suites has 32 office suites each rented for $500/month with a 15% vacancy rate. The owner has the following expenses; heat $10,700, electric $7,300, water $3,700, marketing, advertising and salaries of $92,000, insurance $5,300, mortgage interest of $27,560, property taxes 13398, and maintenance 9227. What is the property's net operating income? round answer to the nearest dollar.A property has the following: 100 studio units renting for $900 / month 120 one-bedroom units renting for $1,200 / month 125 two-bedroom units renting for $1,500 / month Vacancy and uncollectible rent losses amount to 7% of potential gross rent Parking income amounts to $2,500 / month What is the annual Effective Gross Income