833 D Names: Vaishali 1 HTM241 2 EX6-2: Bottom-up pricing 3 4 The following information is given about a resort. 5 Room number: 100 Occupancy rate 70% 6 Owners' equity $400,000 Expected after-tax return 12% 7 Tax rate 35% 8 Mortgage $800,000 Interest rate 12% 9 Building's net book value $1,200,000 10 Furniture and equip. $250,000 Building Depreciation rate Furniture Depreciation rate 10% 20% 11 Other fixed costs $150,000 12 GM's salary $80,000 13 Room variable costs 60% 14 15 1. What is the amount of total fixed costs? 16 17 18 19 20 21 OLD 22 23 24 2. Use the bottom-up approach to find the required sales revenue to cover the costs 25 S expected return EX6-2 ady by g 841 Partly cloudy W NO S 44 D G