The manager of the Hospitality Inn has developed regression analysis equations for forecasting the hotel's dining room sales volume based on the hotel's anticipated guest-night count. The monthly equations (where Y equals the forecast number of meals to be served, and X equals the number of hotel guests) follow: Breakfast Lunch Dinner Y = 750+ 0.82 X Y = 900 + 1.15 X Y = 1,200+ 0.42 X The hotel has 100 rooms. Its occupancy in November is expected to be 70% and its double occupancy rate is 40%. The average meal checks follow: Breakfast Lunch Dinner $5.25 $10.24 $15.78 Calculate the dining room's forecast meal period sales, both in number of guests and sales revenue dollars, for the month of November.

The manager of the Hospitality Inn has developed regression analysis equations for forecasting the hotel's dining room sales volume based on the hotel's anticipated guest-night count. The monthly equations (where Y equals the forecast number of meals to be served, and X equals the number of hotel guests) follow: Breakfast Lunch Dinner Y = 750+ 0.82 X Y = 900 + 1.15 X Y = 1,200+ 0.42 X The hotel has 100 rooms. Its occupancy in November is expected to be 70% and its double occupancy rate is 40%. The average meal checks follow: Breakfast Lunch Dinner $5.25 $10.24 $15.78 Calculate the dining room's forecast meal period sales, both in number of guests and sales revenue dollars, for the month of November.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

George Kyparisis owns a company that manufactures sailboats. Actual demand for George's sailboats during each of the past four seasons was as follows: Year Season Winter Spring Summer Fall 1 1,480 1,520 1,000 640 George has forecasted that annual demand for his sailboats in year 5 will equal 6,500 sailboats. Based on the given data and using the seasonal model, the demand level for George's sailboats in the spring of year 5 will be places). 2 1,240 1,400 2,140 810 Points: 0 of 3 3 1,000 1,640 2,040 690 4 900 1,580 1,960 520 Save sailboats (enter your final answer as a whole number and round all intermediate calculations to two decimal
Analyze Cityscape Hotels Cityscape Hotels has 200 rooms available in a major metropolitan city. The hotel is able to attract business customers during the weekdays and leisure customers during the weekend. However, the leisure customers on weekends occupy fewer rooms than do business customers on weekdays. Thus, Cityscape plans to provide special weekend pricing to attract additional leisure customers. A hotel room is priced at $180 per room night. The cost of a hotel room night includes the following: Line Item Description Cost Per Room Night(at normal occupancy) Housekeeping service $23 Utilities 7 Amenities 3 Hotel depreciation 55 Hotel staff (excluding housekeeping) 42 Total $130 The special weekend price is proposed for $120 per room night. At this price, it is anticipated that average occupancy for the weekend (Friday, Saturday, and Sunday) will increase from 30% to 50% of available rooms. Question Content Area a. What is the contribution margin for a…
Chris LeBlanc estimates that if he does 4.5 hours of research using data that will cost $175.00, there is a good chance that he can improve his expected return on a $10,000, 1-year investment from 6.2% to 9.2%. Chris feels that he must earn at least $30.00 per hour on the time he devotes to his research. a. Find the cost of Chris's research. b. By how much (in dollars) will Chris's return increase as a result of the research? c. On a strict economic basis, should Chris perform the proposed research?
Hotel XYZ is an independent city centre hotel property with 200 rooms. In general its Average Daily rate is approximately €100 throughout the year, and its runs at an average of 65% occupancy. Its distribution channel mix is relatively simple. Currently approximately 50% of its bookings arrive at the hotel through direct channels, with business, leisure and meeting customers contacting the hotel directly. The hotel is listed on the major GDS, generating approximately 10% of its business, while OTAs generate about 20% of its bookings, for which on average it pays a commission of 20% per booking. The hotel has a direct brand.com website, which generates 10% of its bookings, while the remaining 10% come from other miscellaneous sources. In terms of costs, the hotel estimates that the variable cost of selling a room is about €12. Each month the hotel’s labour cost is about €80,000 and Utilities / power & light about €50,000. The hotel has also budgeted €32,000 per month for sales and…
The number of properties newly listed with a real estate agency in each quarter over the last four years is given below. Assume the time series has seasonality without trend. Quarter 1 2 3 4 Year 1 73 89 123 92 Year 2 81 87 115 95 Year 3 76 91 108 87 Year 4 77 88 120 97 a. Develop the optimization model that finds the estimated regression equation that minimize the sum of squared error. b. Solve for the estimated regression equation. c. Forecast the four quarters of Year 5. *Please solve in excel
You are an employee of University Consultants, Limited, and have been given the following assignment. You are to present an investment analysis of a small retail income-producing property for sale to a potential investor. The asking price for the property is $1,360,000; rents are estimated at $174,080 during the first year and are expected to grow at 2.5 percent per year thereafter. Vacancies and collection losses are expected to be 10 percent of rents. Operating expenses will be 35 percent of effective gross income. A fully amortizing 70 percent loan can be obtained at 6 percent interest for 30 years (total annual payments will be monthly payments × 12). The property is expected to appreciate in value at 3 percent per year and is expected to be owned for five years and then sold. Required: a. What is the first-year debt coverage ratio? b. What is the terminal capitalization rate? c. What is the investor’s expected before-tax internal rate of return on equity invested (BTIRR)? d.…
Sky High Partners is evaluating a high-rise office building to add to its investment portfolio. To calculate a value, Sky High plans to use the income approach, based on the following estimates: Gross potential yearly rental income Estimated vacancy rate Yearly operating costs Market capitalization rate a. Compute the net operating income (NOI) for the building. Net operating income $ Valuation $ 890,000 2.75% $ 417,000 14% 448,525 b. Using the income approach, calculate the value for the office building. Note: Round your answer to the nearest whole number.
You are an employee of University Consultants, Limited, and have been given the following assignment. You are to present an investment analysis of a small retail income-producing property for sale to a potential investor. The asking price for the property is $1,430,000; rents are estimated at $183,040 during the first year and are expected to grow at 2.5 percent per year thereafter. Vacancies and collection losses are expected to be 10 percent of rents. Operating expenses will be 35 percent of effective gross income. A fully amortizing 70 percent loan can be obtained at 8 percent interest for 30 years (total annual payments will be monthly payments × 12). The property is expected to appreciate in value at 4 percent per year and is expected to be owned for five years and then sold. Required: a. What is the first-year debt coverage ratio? b. What is the terminal capitalization rate? c. What is the investor’s expected before-tax internal rate of return on equity invested (BTIRR)? d. What…
ABC Co is considering the launch of a new widget. If the product goes directly to the market, there is a 60% chance of success. For $500,000, the manager can conduct a focus group to increase the probability of success to 65%. Alternatively, the manager can pay a consulting firm $750,000 to research the market and refine the product. The consulting firm successfully launches new products 70% of the time. If the firm successfully launches the widget, the payoff will be $8 million. If the product is a failure, the NPV is $0. Calculate the expected NPV if the managers go directly to the market.
You are an employee of University Consultants, Limited, and have been given the following assignment. You are to present an investment analysis of a small retail income-producing property for sale to a potential investor. The asking price for the property is $1,350,000; rents are estimated at $172,800 during the first year and are expected to grow at 2.5 percent per year thereafter. Vacancies and collection losses are expected to be 10 percent of rents. Operating expenses will be 35 percent of effective gross income. A fully amortizing 70 percent loan can be obtained at 7 percent interest for 30 years (total annual payments will be monthly payments × 12). The property is expected to appreciate in value at 3 percent per year and is expected to be owned for five years and then sold. Required: a. What is the first-year debt coverage ratio? b. What is the terminal capitalization rate? c. What is the investor’s expected before-tax internal rate of return on equity invested (BTIRR)? d.…
The manager at the Overton Hotel in Lubbock believes that the success of the Texas Tech Red Raider Basketball team has an impact on the occupancy rate at the hotel during the first quarter of every year. Below are the number of victories for the Red Raiders in during the last three seasons and the hotel occupancy rate. This year, (year 4) the Red Raiders Basketball Team is expected to win 28 games and the manager at the Overton has asked you to determine their first quarter occupancy rate for the upcoming year (year 4) using associative forecasting. Year Wins First Quarter Occupancy Rate 1 25 2 3 27 31 88.32% 91.25% Ⓒ90.29% Ⓒ86.36% 92.21% 80% 90% 93%
For several years, many utilities have employed regression analysis to forecast monthly utility usage by residential customers using weather forecasts, the number of holidays, the number of days in the month, and other factors. For example, the Connecticut Department of Public Utility Control (CDPUC) has determined that regression, properly used, can accurately predict natural gas usage. Most public gas utilities serving Connecticut have reported levels of accuracy from 4% to 10% using regression. One company, Dominion Natural Gas Company of Ohio, uses this approach not to forecast, but to explain to customers why their natural gas bills have gone up or down compared to the prior month and to the same month of the prior year. The bill shows total MCF (thousand cubic feet of natural gas) used by the customer for that month and why the total MCF usage has changed, based on three factors: 1. Change in temperature. Each degree increase in temperature causes an increase in the number of…