Facreise One (18 Points): The Travellers Hotel data for the past 5 years are presented below: Management provides these additional data: \begin{tabular}{|l|r|} \hline Estimated increase ia revenues in year 6 & 15% \\ \hline Estimated decrease in costs in year 6 & 8% \\ \hline Estimated revenues in year 4 & $31,000,000 \\ \hline Estimated revenues in year 5 & $40,000,000 \\ \hline \end{tabular} Required: 1. Compute the estimated profit of year 6 for the Tree Top Hotel using the Naive Model. \begin{tabular}{|l|l|l} \multicolumn{1}{c|}{ llem } & A mount & Computation \\ \hline Year 6 estimated revenues & & \\ \hline Year 6 estimated costs & & \\ \hline Year 6 estimated profit & & \\ \hline \end{tabular} 2. Compute the estimated occupancy. revenues, costs, and profit for Year 6 using a 2-year moving average. \begin{tabular}{l|l|l|} \hline \multicolumn{1}{c|}{ flem } & dmaumf & Compulation \\ \hline Year 6 estimated occupancy & & \\ \hline Year 6 estimated revenues & & \\ \hline Year 6 estimated costs & & \\ \hline Year 6 estimated profit & & \\ \hline \end{tabular} 3. Using the exponential smoothing model, compute the forecasted revenues for Year 6. \begin{tabular}{l|l|l|} \hline \multicolumn{1}{|c|}{ Crem } & dinount & Computation \\ \hline Smoothing Factor & & \\ \hline Year 6 estimated revenues & & \\ \hline \end{tabular} 4. Use the high-low method to determine the equation that relaies to the costs of the hotel and its oceupancy. \begin{tabular}{l|l|l|} \hline \multicolumn{1}{|c|}{ Irem } & Amoumi & Compulation \\ \hline in costs & & \\ \hline in occupancy & & \\ \hline Slope "b" & & \\ \hline Intercept "a" & & \\ \hline \end{tabular} Cost Formula: y= 5. Using the formula obtained in tequirement 4. determine the estimated costs if the botel expects 95,000 guests in Year 6. \begin{tabular}{r|r|r|r} Occupanck & Revemes & Costs & \multicolumn{2}{|c|}{ Profif } \\ \hline 90,000 & $27,000,000 & $13,500,000 & $13,500,000 \\ \hline 80,000 & $24,800,000 & $15,800,000 & $9,000,000 \\ \hline 120,000 & $38,400,000 & $22,800,000 & $15,600,000 \\ \hline 100,000 & $34,000,000 & $21,000,000 & $13,000,000 \\ \hline 110,000 & $38,500,000 & $25,300,000 & $13,200,000 \\ \hline \end{tabular} 15%$31,000,0008%$40,000,000 \begin{tabular}{r|l} \multicolumn{1}{c|}{ Amount } & \\ \hline$44,275,000 & $38,500,000(1+15%) \\ \hline 23,276,000 & $25,300,000(18%) \\ \hline$20,999,000 & $44,275,000$23,276,000 \end{tabular} \begin{tabular}{r|l|c|} \hline \multicolumn{1}{c|}{ Amount } & Computation \\ \hline 105,000 & (100,000+110,000)+2 \\ \hline$36,250,000 & ($34,000,000+38,500,000)+2 \\ \hline 23,150,000 & ($21,000,000+25,300,000)+2 \\ \hline$13,100,000 & $36,250,000$23,150,000 \\ \hline \end{tabular} \begin{tabular}{c|cc|c|} \hline 51,800,000 & + & 5175x \\ \hline & & \\ \cline { 1 - 3 } & & Computation \\ \hline dmount & \\ \hline$18,425,000 & $1,800,000+($17595,000) \end{tabular} Reavelint: CDEFG 2. Compute the estimated occupancy, revenues, costs, and profit for Year 6 using a 2 -year moving average 3. Using the exponential smoothing model, compute the forecasted revenues for Year 6 . 4. Use the high-low method to determine the equation that relates to the costs of the hotel and its occupancy. 5. Using the formuly obtained in requirement 4, determine the estimated costs if the hotel expects 95,000 guests in Year 6. Facreise One (18 Points): The Travellers Hotel data for the past 5 years are presented below: Management provides these additional data: \begin{tabular}{|l|r|} \hline Estimated increase ia revenues in year 6 & 15% \\ \hline Estimated decrease in costs in year 6 & 8% \\ \hline Estimated revenues in year 4 & $31,000,000 \\ \hline Estimated revenues in year 5 & $40,000,000 \\ \hline \end{tabular} Required: 1. Compute the estimated profit of year 6 for the Tree Top Hotel using the Naive Model. \begin{tabular}{|l|l|l} \multicolumn{1}{c|}{ llem } & A mount & Computation \\ \hline Year 6 estimated revenues & & \\ \hline Year 6 estimated costs & & \\ \hline Year 6 estimated profit & & \\ \hline \end{tabular} 2. Compute the estimated occupancy. revenues, costs, and profit for Year 6 using a 2-year moving average. \begin{tabular}{l|l|l|} \hline \multicolumn{1}{c|}{ flem } & dmaumf & Compulation \\ \hline Year 6 estimated occupancy & & \\ \hline Year 6 estimated revenues & & \\ \hline Year 6 estimated costs & & \\ \hline Year 6 estimated profit & & \\ \hline \end{tabular} 3. Using the exponential smoothing model, compute the forecasted revenues for Year 6. \begin{tabular}{l|l|l|} \hline \multicolumn{1}{|c|}{ Crem } & dinount & Computation \\ \hline Smoothing Factor & & \\ \hline Year 6 estimated revenues & & \\ \hline \end{tabular} 4. Use the high-low method to determine the equation that relaies to the costs of the hotel and its oceupancy. \begin{tabular}{l|l|l|} \hline \multicolumn{1}{|c|}{ Irem } & Amoumi & Compulation \\ \hline in costs & & \\ \hline in occupancy & & \\ \hline Slope "b" & & \\ \hline Intercept "a" & & \\ \hline \end{tabular} Cost Formula: y= 5. Using the formula obtained in tequirement 4. determine the estimated costs if the botel expects 95,000 guests in Year 6. \begin{tabular}{r|r|r|r} Occupanck & Revemes & Costs & \multicolumn{2}{|c|}{ Profif } \\ \hline 90,000 & $27,000,000 & $13,500,000 & $13,500,000 \\ \hline 80,000 & $24,800,000 & $15,800,000 & $9,000,000 \\ \hline 120,000 & $38,400,000 & $22,800,000 & $15,600,000 \\ \hline 100,000 & $34,000,000 & $21,000,000 & $13,000,000 \\ \hline 110,000 & $38,500,000 & $25,300,000 & $13,200,000 \\ \hline \end{tabular} 15%$31,000,0008%$40,000,000 \begin{tabular}{r|l} \multicolumn{1}{c|}{ Amount } & \\ \hline$44,275,000 & $38,500,000(1+15%) \\ \hline 23,276,000 & $25,300,000(18%) \\ \hline$20,999,000 & $44,275,000$23,276,000 \end{tabular} \begin{tabular}{r|l|c|} \hline \multicolumn{1}{c|}{ Amount } & Computation \\ \hline 105,000 & (100,000+110,000)+2 \\ \hline$36,250,000 & ($34,000,000+38,500,000)+2 \\ \hline 23,150,000 & ($21,000,000+25,300,000)+2 \\ \hline$13,100,000 & $36,250,000$23,150,000 \\ \hline \end{tabular} \begin{tabular}{c|cc|c|} \hline 51,800,000 & + & 5175x \\ \hline & & \\ \cline { 1 - 3 } & & Computation \\ \hline dmount & \\ \hline$18,425,000 & $1,800,000+($17595,000) \end{tabular} Reavelint: CDEFG 2. Compute the estimated occupancy, revenues, costs, and profit for Year 6 using a 2 -year moving average 3. Using the exponential smoothing model, compute the forecasted revenues for Year 6 . 4. Use the high-low method to determine the equation that relates to the costs of the hotel and its occupancy. 5. Using the formuly obtained in requirement 4, determine the estimated costs if the hotel expects 95,000 guests in Year 6
