What is the minimum price that must be charged per night for the hotel to give an annual return of 12% on the investment made by the partners in its construction. The amount invested was R$ 10,000,000.00. Assume an occupancy rate of 30%. *
What is the minimum price that must be charged per night for the hotel to give an annual return of 12% on the investment made by the partners in its construction. The amount invested was R$ 10,000,000.00. Assume an occupancy rate of 30%. *
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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5- A hotel has 300 rooms and an annual fixed cost of R$ 2,800,000.00 and variable operating costs of R$ 120.00 per occupied room, that is, per day-room. The hotel operates 365 days a year and is subject to a 15% income tax. Required: What is the minimum price that must be charged per night for the hotel to give an annual return of 12% on the investment made by the partners in its construction. The amount invested was R$ 10,000,000.00. Assume an occupancy rate of 30%. *
a) R$ 241.46
b) R$ 205.24
c) R$ 284.43
d) R$ 241.77
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