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10 DO Kristin Helmud is the general manager of Highland Inn, a local mid-priced hotel with 100 rooms. Her job objectives include providing resourceful and

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10 DO Kristin Helmud is the general manager of Highland Inn, a local mid-priced hotel with 100 rooms. Her job objectives include providing resourceful and friendly service to the hotel's guests, maintaining an 80% occupancy rate, Improving the average rate received per room to $102 from the current $99, achieving a savings of 4% on all hotel costs, and reducing energy use by 8% by carefully managing the use of heating and alr conditioning in unused rooms and by carefully managing the onsite laundry facility, among other means. The hotel's owner, a partnership of seven people who own several hotels in the region, wants to structure Kristin's future compensation to objectively reward her for achieving these gools. In the past, she has been paid an annual salary of $86,000 with no incentive pay. The incentive plan the partners developed has each of the goals weighted as follows Frontal Occupancy rattato reflecta quest service quality sy 200 Op within 4 speed 30 Avenue on rate 30 Boy 20 1001 who Krutin achieve all of these goals, the partners determined that her performance should not bonus of $44.000. The partners also agree that her salary will need to be reduced to 574 000 because of the addition of the bonus The goal mastures used to compensate Kristin are as follows by a Comption 29.210 - 100.365 daya 300 ve 146.00 12.00 8.200-10.1016 PE ight i ne goal measures used to compensate Kristin are as follows: Occupancy goal: Compensation Expanse goal Compensation Room rate goal: Compensation 29,200 ron-nights - 804 occupancy rate * 100 rooms 365 days 204 weight $44,000 target bonos - $8,800 $8,800/29,200 - $0.3014 per room-night 40 savings 308 weight * $44,000 target bonus - $13,200 $13,200/4 - $3,300 for each percentage point saved $3 rate increase 306 weight * $44,000 target bonus - $13,200 $13,200/300 - $44.00 for each cent increase 84 savings 204 weight $44,000 target bonas - $8,800 $8,800/8 - $1,100 for each percentage point saved Energy use goal Compensation Kristin's new compensation plan will thus pay her a $74,000 salary plus 30.14 cents per room-night sold plus $3,300 for each percentage point saved in the expense budget plus $44 for each cent increase in the average room rate plus $1100 for each percentage point saved in energy use. The minimum potential compensation would be $74,000 and the maximum potential compensation for Kristin would be $74,000 + $44,000 - $118.000 Required: 1. Based on this plan, what will Kristin's total compensation be if her performance results are (Round your answers to the nearest whole dollar amount.) a. 30,000 room-nights, 4% saved, $3.00 rate increase, and 6% reduction in energy use? b. 25,000 room-nights, 2% saved, $1.15 rate increase, and 3% reduction in energy use? c.28,000 room nights, 0% saved, $1.00 rate increase, and 1% reduction in energy use? Kristin's new compensation plan will thus pay her a $74,000 salary plus 30.14 cents per room-night sole each percentage point saved in the expense budget plus $44 for each cent increase in the average ro for each percentage point saved in energy use. The minimum potential compensation would be $74,00 maximum potential compensation for Kristin would be $74,000+ $44,000 - $118,000 Required: 1. Based on this plan, what will Kristin's total compensation be if her performance results are (Round your ansu whole dollar amount.) a. 30,000 room-nights, 4% saved, $3.00 rate increase, and 6% reduction in energy use? b. 25,000 room-nights, 2% saved, $1.15 rate increase, and 3% reduction in energy use? c. 28,000 room-nights, 0% saved, $1.00 rate increase, and 1% reduction in energy use? a. Total compensation b. Total compensation c. Total compensation

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