Suppose a hotel rents rooms but also has an onsite restaurant. Of the hotel's total 50,000...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Suppose a hotel rents rooms but also has an onsite restaurant. Of the hotel's total 50,000 square feet, the restaurant occupies 5,000 square feet and the rooms occupy the rest. If indirect costs of $100,000 are allocated based on square footage, which of the following statements is true? Multiple Choice a $50,000 is allocated to the rooms segment. a.$5,000 is allocated to the restaurant. a $10,000 is allocated to the restaurant. a $95,000 is allocated to the rooms segment. Consider the following information for Maple Tree Hotel for 2020. Consider 365 days in a year. Average room rate $200, Number of rooms available 125, Occupancy rate 80%. Annual financial figures are as follow. Sales 7.3 MN (millions), Varaible expenses 2.3 MN, FC 4.5 MN. What is the breakeven occupancy rate for Maple Tree Hotel? Multiple Choice O O O O 75% 70% 80% 72% Craftman Inc following information for its main product Selling price per unit Costs per unit (at the normal capacity of 38,000 units): Direct material Direct labour Variable overhead Fixed overhead Sales Commission. Contribution margin ratio Breakeven sales Required: 1. Compute the contribution margin ratio and break-even sales. Margin of safety Dollars % 2. What is the margin of safety in dollars and units, and the degree of operating leverage? (Round "Degree of operating leverage" to 2 decimal places and the rest to the nearest whole number.) Degree of operating leverage $380 30 25 25 50 7.5% of sales Units Suppose a hotel rents rooms but also has an onsite restaurant. Of the hotel's total 50,000 square feet, the restaurant occupies 5,000 square feet and the rooms occupy the rest. If indirect costs of $100,000 are allocated based on square footage, which of the following statements is true? Multiple Choice a $50,000 is allocated to the rooms segment. a.$5,000 is allocated to the restaurant. a $10,000 is allocated to the restaurant. a $95,000 is allocated to the rooms segment. Consider the following information for Maple Tree Hotel for 2020. Consider 365 days in a year. Average room rate $200, Number of rooms available 125, Occupancy rate 80%. Annual financial figures are as follow. Sales 7.3 MN (millions), Varaible expenses 2.3 MN, FC 4.5 MN. What is the breakeven occupancy rate for Maple Tree Hotel? Multiple Choice O O O O 75% 70% 80% 72% Craftman Inc following information for its main product Selling price per unit Costs per unit (at the normal capacity of 38,000 units): Direct material Direct labour Variable overhead Fixed overhead Sales Commission. Contribution margin ratio Breakeven sales Required: 1. Compute the contribution margin ratio and break-even sales. Margin of safety Dollars % 2. What is the margin of safety in dollars and units, and the degree of operating leverage? (Round "Degree of operating leverage" to 2 decimal places and the rest to the nearest whole number.) Degree of operating leverage $380 30 25 25 50 7.5% of sales Units
Expert Answer:
Answer rating: 100% (QA)
Computation of indirect cost allocated to restaurant Indir... View the full answer
Related Book For
Statistics For Business Decision Making And Analysis
ISBN: 9780321890269
2nd Edition
Authors: Robert Stine, Dean Foster
Posted Date:
Students also viewed these accounting questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
The Thompson Toy Company manufactures toy building block sets for children. Thompson is planning for 2017 by developing a master budget by quarters. Thompsons balance sheet for December 31, 2016,...
-
A coil of wire 0.1 m long and having 15 turns carries a current of 1.0 A. (a) Compute the flux density if the coil is within a vacuum. (b) A bar of an iron-silicon alloy, the B-H behavior for which...
-
On May 10 Ritz Company sold merchandise for $6,000 and accepted the customers First Business Bank MasterCard. At the end of the day, the First Business Bank MasterCard receipts were deposited in the...
-
How would you use the graphic on this chapter's first page and to assess Apple's 2010 marketing ROS (27.5%) and marketing ROI (323%)?
-
Inverness plc has prepared the following draft financial statements for the year ended 31 October 1997: Profit and loss account for the year ended 31 October 1997 Additional information (1) During...
-
Multiple Choice Questions The following questions deal with tests of controls. Choose the best response. a. Which of the following statements about tests of controls is most accurate? (1) Auditing...
-
The half-life of Palladium-100 is 4 days. After 16 days a sample of Palladium-100 has been reduced to a mass of 7 mg. What was the initial mass (in mg) of the sample? What is the mass 7 weeks after...
-
Questions 4. What would be a reasonable estimate of total cost for January of Year 2? 5. With only a 5 percent risk of being wrong, would you accept without investigation a January of Year 2 actual...
-
please assist . Fitness Creations Limited bought the following machineries with cash, over a two (2) year period: January 1, 2019 One machinery costing $60,000 January 1, 2020 Two machineries...
-
Recommend and justify the practical steps and initiatives the CEO of McDonalds can undertake to ensure all staff are involved in the process of their strategic plan and corporate objectives.
-
What would be the budget lines and estimates in Kenya Shillings to sample 200 branches while conducting the study titled "The effect of Quality Management to the Financial Performance of Commercial...
-
1.How would a company's cost of capital calculated from book values be affected if the company's bonds were selling for more than face value? 4.Assume the issuer incurs $1 million in other expenses...
-
CleverTechnology Angel Investor owns 4,000,000 shares (or 16% of shares) of Bluebox Software from a Series A round. The Board of Bluebox Software decides to raise additional $8,500,000 in a Series B...
-
Explain the impact borrowing money to finance college could have on future financial stability and security. Research multiple viewpoints that support or question the use of student loan debt in...
-
Generally speaking, ___ % of your company's future revenue will come from ____ % of your existing customers.a.80; 20b.90; 10c.70; 30d.60; 40
-
Tiger, Inc. signed a lease for equipment on July 1, 2007.The lease is for 10 years (the useful life of the asset).The first of 10 equal annual payments of $500,000 was made on July 1, 2007.The...
-
1. The reliability of polynomial trend models is highest at the edges of the data (first and last time points) and falls off slowly as we extrapolate. 2. An auto regression is a regression in which...
-
A game involving chance is said to be a fair game if the expected amount won or lost is zero. Consider the following arcade game. A player pays $1 and chooses a number from 1 to 10. A spinning wheel...
-
This dataset tracks the monthly performance of stock in Apple from January 1990 through December 2011. The data include 264 monthly returns on Apple as well as returns on the entire stock market,...
-
What is the reason for separating the cash balance between minimum cash and excess cash?
-
From the adjusted trial balance in E 10, prepare the required closing entries for Fish Bowl Cleaning Company, Inc.
-
What should the general manager learn from sensitivity analyses?
Study smarter with the SolutionInn App