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7. Assume that the Presidential Suite has the same profit margin as the standard guest room. What should its selling price be? Show all calculations.
7. Assume that the Presidential Suite has the same profit margin as the standard guest room. What should its selling price be? Show all calculations.
Standard Guest Totsls unlor Sulte Presidential Sulte Presidential Suite Costreadmunt Cost driver VolumeS0 3 200,000 Depreclstior 3,200,000 Square feet so,00o 30,000 110,000 Depreciation S3,200,000 Sqr fee: 1,454,545 $1,050,000 $42,00000 310,000 Price $140,000 $240,000 5955 33| $2,181 82 $90,0002,000 $54,00085,00o 20,00020,000 Unit $320,000 5850 000 490,00 $1,700,000 Direct labor $1,800,000 149,000 148,500 471,500 Mainbenance $1,800,000 turing of purchase Parchasin $320,00urchase 2,500 114,000207,000 turin 3 550,000 Note Marfacturing overhead cast are Inspection fixed. They do not v ross $20,000 33,00o t of 1,000 S8sD,000 158879 labor 1,200 257,895 45.00 65.38 Supervision 1,700,000 Supervision i,700,000o 917,184 779,606 Supplies 190,000manufact supplies is0,000manufactured 100000.00 $21,7003 23,5737 107,713.05 Manufact uring Standard Junior Suite PresidentiaTotals Presidential Suite Cost per Standard Junior Suite Amount Cost driver Guest Check Suite square foot Guest room Room Depreciat $3,200,000 110,000 square feet Square feet 50,000 30,00030,000 $ 29.09 $1,454,545$ 872,727 $872,727 3,200,000 on Maintena $1,800,000 Direct labor hours 180,000 143,000 148,500 471,500 nce Purchasin$320,000 Inspectio $850,000 490,000 $1,700,000 $190,000 $8,550,000 # of purchase orders 2,5001,500 9, 9,000 13,000 # of i nspections 1,000 850 3,500 5,350 Indirect materials Supervisi on Units manufactured 150 110 25 285 # of i nspections 1,000 850 3.5 1,854 Supplies Units manufactured 150 110 25 285 Total 234800 176420 191054 602274Step by Step Solution
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