What is the management fee as a percentage of total revenue for a 275-room hotel located in the northwest, if the property recorded an occupancy percentage of 67.3% and an average room rate of $110.86? the hotel had a room revenue to total revenue ratio of 65.1% and a GOP of 29.3% of total revenue.
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- What is the management fee as a percentage of total revenue for a 275-room hotel located in the northwest, if the property recorded an occupancy percentage of 67.3% and an average room rate of $110.86? the hotel had a room revenue to total revenue ratio of 65.1% and a GOP of 29.3% of total revenue. The management fee contract stipulated that the hotel management company would receive 1% of total revenue and 9% of GOP.
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- Bank Al-Izz provided working capital to Tijarah Construction. based on the principle of musharakah mutanaqisah amounting to OR 400,000. Profit and loss sharing ratio as agreed by both parties is similar to the ratio of capital contribution which is 40:60 (Bank: Customer) at the beginning of the contract. The repayment shall be equal throughout the contract period. The profit and loss for the above project is as follows: Year 1 Loss of OR 180,000 Year 2 Profit of OR 150,000 Year 3 Profit of OR 220,000 Year 4 Loss of OR 80,000 Determine the profits or losses to be recognised by Bank Al-Izz for Year 1 Year 2 Year 3 Year 4Franklin Construction entered into a fixed-price contract to build a freeway-connecting ramp for $30 million. Construction costs incurred in the first year were $16 million and estimated remaining costs to complete at the end of the year were $17 million. How much gross profit or loss will Franklin recognize in the first year if it recognizes revenue over time according to percentage of completion? What if instead Franklin recognizes revenue upon contract completion?Southwest Milling Company purchased a front-end loader to move stacks of lumber. The loader had a list price of $115,370. The seller agreed to allow a 6.25 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Transportation cost amounted to $2,080. Southwest Milling had to hire a specialist to calibrate the loader. The specialist's fee was $1,150. The loader operator is paid an annual salary of $11,910. The cost of the company's theft insurance policy increased by $2,090 per year as a result of acquiring the loader. The loader had a four-year useful life and an expected salvage value of $9,900. Required: Determine the amount to be capitalized in an asset account for the purchase of the front-end loader. Note: Round your answers to the nearest whole dollar. Amounts to be deducted should be indicated with minus sign. Costs that are to be capitalized: List price Total costs
- Phoenix Management helps rental property owners find renters and charges the owners one-half of the first month’s rent for this service. For August 2022, Phoenix expects to find renters for 100 apartments with an average first month’s rent of $760. Budgeted cost data per tenant application for 2022 follow: Professional labor: 2.0 hours at $15.00 per hour Credit checks: $53.00 Phoenix expects other costs, including the lease payment for the building, secretarial help, and utilities, to be $3,600 per month. On average, Phoenix is successful in placing one tenant for every three applicants. Actual rental applications in August 2022 were 270. Phoenix paid $9,300 for 480 hours of professional labor. Credit checks went up to $58 per application. Other costs in August 2022 (lease, secretarial help, and utilities) were $3,900. The average first monthly rentals for August 2022 were $860 per apartment unit for 90 units. Required: 1. (a) What is the master budget variance for August…Romano Services provides room cleaning arrangements for hotels in Ohio. On April 1, Silvia Hotels & Resorts signed an agreement to outsource its room-cleaning functions to Romano. The contract specifies the service fee to be $15,000 per month, and all payments are to be made shortly after the end of each quarter. It also specifies that Romano will receive an additional quarterly bonus of $3,000 if, during that quarter, Silvia receives no more than five complaints from customers about room cleanliness. On April 1, based on historical experience, Romano estimated that there is a 75% chance that it will receive the quarterly bonus. On May 5, Romano learned that, during March, there were two complaints from customers related to room cleanliness. Based on this new information, Romano revised its estimate downward to 40% that it would be entitled to receive the quarterly bonus. On June 30, Silvia notified Romano that, for the quarter ended, there were four complaints associated with…Sunrise Suites and Nationwide Inns operate competing hotel chains across the region. Hotel capacity information for both hotels is as follows: Number of Hotels Average Number of Rooms per Hotel Sunrise Suites 120 90 Nationwide Inns 150 76 Information on the number of guests for each hotel and the average length of visit for June were as follows: Number of Guests Average Length of Visit (in Nights) Sunrise Suites 183,600 1.5 Nationwide Inns 228,000 1.2 a. Determine the guest nights for each hotel in June. Guest Nights Sunrise Suites fill in the blank 1 Nationwide Inns fill in the blank 2 b. Determine the room nights for each hotel in June. Room Nights Sunrise Suites fill in the blank 3 Nationwide Inns fill in the blank 4 c. Determine the occupancy rate of each hotel in June. Occupancy Rate Sunrise Suites fill in the blank 5 % Nationwide Inns fill…
- Southwest Milling Company purchased a front-end loader to move stacks of lumber. The loader had a list price of $117,890. The seller agreed to allow a 5.00 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Transportation cost amounted to $2,680. Southwest Milling had to hire a specialist to calibrate the loader. The specialist's fee was $770. The loader operator is paid an annual salary of $28,360. The cost of the company's theft insurance policy increased by $1,940 per year as a result of acquiring the loader. The loader had a four-year useful life and an expected salvage value of $6,100. Required: Determine the amount to be capitalized in an asset account for the purchase of the front-end loader. Note: Round your answers to the nearest whole dollar. Amounts to be deducted should be indicated with minus sign. Costs that are to be capitalized: List price Total costs $ 0Allee Corp. is evaluating a revenue arrangement todetermine proper revenue recognition. The contract is forconstruction of 10 speedboats for a contract price of$400,000. The customer needs the boats in its showroomsby February 1, 2018, for the boat purchase season; thecustomer provides a bonus payment of $21,000 if allboats are delivered by the February 1 deadline. The bonusis reduced by $7,000 each week that the boats are deliveredafter the deadline until no bonus is paid if the boatsare delivered after February 15, 2018. Allee frequentlyincludes such bonus terms in it contracts and thus hasgood historical data for estimating the probabilities ofcompletion at different dates. It estimates an equal probability(25%) for each full delivery outcome. Assume thatAllee has limited experience with a construction projecton the same scale as the 10 speedboats. How does thisaffect the accounting for the variable consideration?Marin Construction Inc. agrees to construct a boat dock at the Smooth Sailing Marina for $32,400. In addition, under the terms of the contract, Smooth Sailing will pay Marin a performance bonus of up to $12,000 based on the timing of completion. The performance bonus will be paid fully if construction is completed by the agreed-upon date. The performance bonus decreases by $2,400 per week for every week beyond the agreed-upon completion date. Marin has constructed a number of boat docks under similar agreements. Marin’s management estimates, that it has a 60% probability of completing the project on time, a 20% probability of completing the project one week late, and a 20% probability of completing the project two weeks late. Management does not believe the project will be more than two weeks late.Determine the transaction price that Marin should compute for this agreement.