For this question there are multiple photos and parts but you will only solve for the CVP questions using the provided information and the income statement.

Font Alignment 5 Number Styles Cells Editing fx A B D E H K Q1 The hotel's total cost for Property Operations and Maint for the 12 month period is listed below along with the number of rooms sold. Based on the given information, find the VC per unit, Total VC and monthly Fixed cost. Utility Cost Rooms Sold Highest Lowest Difference Month January February March April May June July August September October November December Total Property Operations and Maint. $30,000 32,000 34,000 36,000 38,000 40,000 42,000 44,000 46,000 40,000 38,000 26.000 446000 Rooms Sold 2500 2700 2900 3100 3300 3500 3700 3900 4100 3500 3300 2100 38600 VC Per unit Total VC Monthly Fixed Cost n COCO co Instructions Part 1-Cost Management Part 2-CVP Analysis Part-3 True-F.... + Type here to search BE Number X Styles Cells B C D H Q2 Ron Swanson Restaurant has an opportunity to pay a fixed rent for its premises of $60,000 a month or a variable rent of 8% of its sales revenue. Based on the given information, find the indifference point Fixed Rent Annual Variable Rent Anmal Indifference Point Instructions Part 1-Cost Management Part 2-CVP Analysis Part-3 True-F... Type here to search O Number of rooms $ ADR OCC RevPAR 240 2019 320 80% 256 $ New Revenues Sales Mix REVENUE Rooms Food & Beverage Other Operated Departments Miscellaneous Income TOTAL REVENUE $ $ $ $ $ 22,425,600 6,240,000 480,500 40,000 29,186,100 Fixed Cost Variable Cost New VC DEPARTMENTAL EXPENSES Rooms Food & Beverage Other Operated Departments TOTAL DEPARTMENTAL EXPENSES $ $ $ $ 5,157,888 3,868,800 120,125 9,146,813 $ 20,039,287 TOTAL DEPARTMENTAL PROFITS UNDISTRIBUTED OPERATING EXPENSES Administrative & General Instructions Part 1-Cost Management S Part 2-CVP Analysis 4,669,776 Part-3 True-F ... + o Type here to search A B C D 23 24 25 UNDISTRIBUTED OPERATING EXPENSES Administrative & General Marketing Utility Costs Property Operation & Maintenance TOTAL UNDISTRIBUTED OPERATING EXPENSES 26 27 28 $ $ $ $ $ 4,669,776 2,918,610 291,861 350,233 8,230,480 29 30 GROSS OPERATING PROFIT $ 11,808,807 Franchise Fees Management Fees $ $ 897,024 708,528 31 32 33 34 35 36 37 38 INCOME BEFORE FIXED CHARGES $ 10,203,254 SELECTED FIXED CHARGES Property Taxes Insurance Reserve For Capital Replacement 39 40 $ $ $ 420,000 62,000 180,000 41 42 43 44 EBITDA Depreciation Interest Expense Income Before Income Tax Income Tax @ 25% Instructions Part 1-Cost Management $ $ $ $ $ Part 2-CVP Analysis 9,541,254 236,000 20,000 9,285,254 2,321,314 Part-3 True-F ... 45 46 Type here to search BE Franchise Fees Management Fees $ 897,024 708,528 INCOME BEFORE FIXED CHARGES $ 10,203,254 SELECTED FIXED CHARGES Property Taxes Insurance Reserve For Capital Replacement $ $ $ 420,000 62,000 180,000 EBITDA Depreciation Interest Expense Income Before Income Tax Income Tax @ 25% Net Income $ $ $ $ $ $ 9,541,254 236,000 20,000 9,285,254 2,321,314 6,963,941 Total CMR New CMR Instructions Part-3 True-F Part 1-Cost Management Part 2-CVP Analysis Type here to search o Based on the income statement and the information below: The income tax rate is 25%. Number of rooms is 240, and hotel operates at 80% occupancy. Room, Food & Beverage, and Other Operated Department expenses are directly variable with total sales revenue. Administrative & General: $2,400,000 is fixed, the remainder is variable with total revenue. Marketing $1,240,000 is fixed, the remainder is variable with total revenue. Utilities cost: $180,000 is fixed, the remainder is variable with total revenue. Property Operations & Maintenance: $188,000 is fixed, the remainder is variable with total revenue. Assume both franchise fees and management fees to be fixed. Answer the following questions. 1. What is the revenue at breakeven point? 2. At breakeven point what would the room revenues be? 3. At breakeven point, what is the occupancy at $320 ADR? 4. What revenue is required to achieve desired operating income income before income tax) of $12,000,000? 5. If the operating income (income before income tax) of $12,000,000 achieved, how much would the food and beverage revenue be? 6. If rooms and food & beverage revenues increase by 10% and 15%, respectively, through price increases, what would the new breakeven be? 7. If fixed cost increases by $2,400,000, how much addtional revenues is needed to cover the additional fixed expenses? 8. What would the required revenue be if a net income of $9,000,000 is desired? 9. What would the occupancy rate be if a net income of $9,000,000 is achieved at $320 ADR? 10. If the depreciation expense decreases by 100,000, what would the breakeven point be? 11. If the hotel reduces all departmental expenses by 10%, what would the new breakeven be? 12. What would the required revenue be if a net income of $10,000,000 is desired and at the same time the fixed expenses incease by $1,200,000? Instructions Part 1-Cost Management Part 2-CVP Analysis Part-3 True-F Type here to search OBI Place your final answers here You can use these columns to further explain your calculations Final Answers BEP Revenue BEP Rooms Revenue BEP OCC Requied Revenue F & B Revenue New BEP Revenue Additional Revenue Requied Revenue Req Rev OCC BEP with decrease in depreciation BEP if DE decrease by 10% Requied Revenue Part 2-CVP Analysis Part-3 True-F ... Instructions Part 1-Cost Management ORI Type here to search Font Alignment 5 Number Styles Cells Editing fx A B D E H K Q1 The hotel's total cost for Property Operations and Maint for the 12 month period is listed below along with the number of rooms sold. Based on the given information, find the VC per unit, Total VC and monthly Fixed cost. Utility Cost Rooms Sold Highest Lowest Difference Month January February March April May June July August September October November December Total Property Operations and Maint. $30,000 32,000 34,000 36,000 38,000 40,000 42,000 44,000 46,000 40,000 38,000 26.000 446000 Rooms Sold 2500 2700 2900 3100 3300 3500 3700 3900 4100 3500 3300 2100 38600 VC Per unit Total VC Monthly Fixed Cost n COCO co Instructions Part 1-Cost Management Part 2-CVP Analysis Part-3 True-F.... + Type here to search BE Number X Styles Cells B C D H Q2 Ron Swanson Restaurant has an opportunity to pay a fixed rent for its premises of $60,000 a month or a variable rent of 8% of its sales revenue. Based on the given information, find the indifference point Fixed Rent Annual Variable Rent Anmal Indifference Point Instructions Part 1-Cost Management Part 2-CVP Analysis Part-3 True-F... Type here to search O Number of rooms $ ADR OCC RevPAR 240 2019 320 80% 256 $ New Revenues Sales Mix REVENUE Rooms Food & Beverage Other Operated Departments Miscellaneous Income TOTAL REVENUE $ $ $ $ $ 22,425,600 6,240,000 480,500 40,000 29,186,100 Fixed Cost Variable Cost New VC DEPARTMENTAL EXPENSES Rooms Food & Beverage Other Operated Departments TOTAL DEPARTMENTAL EXPENSES $ $ $ $ 5,157,888 3,868,800 120,125 9,146,813 $ 20,039,287 TOTAL DEPARTMENTAL PROFITS UNDISTRIBUTED OPERATING EXPENSES Administrative & General Instructions Part 1-Cost Management S Part 2-CVP Analysis 4,669,776 Part-3 True-F ... + o Type here to search A B C D 23 24 25 UNDISTRIBUTED OPERATING EXPENSES Administrative & General Marketing Utility Costs Property Operation & Maintenance TOTAL UNDISTRIBUTED OPERATING EXPENSES 26 27 28 $ $ $ $ $ 4,669,776 2,918,610 291,861 350,233 8,230,480 29 30 GROSS OPERATING PROFIT $ 11,808,807 Franchise Fees Management Fees $ $ 897,024 708,528 31 32 33 34 35 36 37 38 INCOME BEFORE FIXED CHARGES $ 10,203,254 SELECTED FIXED CHARGES Property Taxes Insurance Reserve For Capital Replacement 39 40 $ $ $ 420,000 62,000 180,000 41 42 43 44 EBITDA Depreciation Interest Expense Income Before Income Tax Income Tax @ 25% Instructions Part 1-Cost Management $ $ $ $ $ Part 2-CVP Analysis 9,541,254 236,000 20,000 9,285,254 2,321,314 Part-3 True-F ... 45 46 Type here to search BE Franchise Fees Management Fees $ 897,024 708,528 INCOME BEFORE FIXED CHARGES $ 10,203,254 SELECTED FIXED CHARGES Property Taxes Insurance Reserve For Capital Replacement $ $ $ 420,000 62,000 180,000 EBITDA Depreciation Interest Expense Income Before Income Tax Income Tax @ 25% Net Income $ $ $ $ $ $ 9,541,254 236,000 20,000 9,285,254 2,321,314 6,963,941 Total CMR New CMR Instructions Part-3 True-F Part 1-Cost Management Part 2-CVP Analysis Type here to search o Based on the income statement and the information below: The income tax rate is 25%. Number of rooms is 240, and hotel operates at 80% occupancy. Room, Food & Beverage, and Other Operated Department expenses are directly variable with total sales revenue. Administrative & General: $2,400,000 is fixed, the remainder is variable with total revenue. Marketing $1,240,000 is fixed, the remainder is variable with total revenue. Utilities cost: $180,000 is fixed, the remainder is variable with total revenue. Property Operations & Maintenance: $188,000 is fixed, the remainder is variable with total revenue. Assume both franchise fees and management fees to be fixed. Answer the following questions. 1. What is the revenue at breakeven point? 2. At breakeven point what would the room revenues be? 3. At breakeven point, what is the occupancy at $320 ADR? 4. What revenue is required to achieve desired operating income income before income tax) of $12,000,000? 5. If the operating income (income before income tax) of $12,000,000 achieved, how much would the food and beverage revenue be? 6. If rooms and food & beverage revenues increase by 10% and 15%, respectively, through price increases, what would the new breakeven be? 7. If fixed cost increases by $2,400,000, how much addtional revenues is needed to cover the additional fixed expenses? 8. What would the required revenue be if a net income of $9,000,000 is desired? 9. What would the occupancy rate be if a net income of $9,000,000 is achieved at $320 ADR? 10. If the depreciation expense decreases by 100,000, what would the breakeven point be? 11. If the hotel reduces all departmental expenses by 10%, what would the new breakeven be? 12. What would the required revenue be if a net income of $10,000,000 is desired and at the same time the fixed expenses incease by $1,200,000? Instructions Part 1-Cost Management Part 2-CVP Analysis Part-3 True-F Type here to search OBI Place your final answers here You can use these columns to further explain your calculations Final Answers BEP Revenue BEP Rooms Revenue BEP OCC Requied Revenue F & B Revenue New BEP Revenue Additional Revenue Requied Revenue Req Rev OCC BEP with decrease in depreciation BEP if DE decrease by 10% Requied Revenue Part 2-CVP Analysis Part-3 True-F ... Instructions Part 1-Cost Management ORI Type here to search