Hi, this is the second time I'm submitting this question. The answer a tutor left is wrong. So I resubmitted and another tutor said the reference info is missing. So here we go. I don't think the answer you have are correct and for some reason I'm not getting it either. Can you please review this question. cost management a strategic emphasis chapter 20 question 44. Thank you

arunkumarlehragaga

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Missing information: reference

for proles 2. Suppose that the policy for benefit instances have occurred: a. The company has occasionally paid the travel expenses of vice presidents spouse is unclear as to whether this is allowed. b. Some vice presidents have special-ordered their company-provided vehicles, which costs the com- pany, on average, an additional $23,000 for each car. C. Passes to the executive suite have been lent to other DuMelon professionals. d. Some of the vice presidents have offices that are much larger than those of other vice presidents. No apparent factors determine who gets the larger offices. How might these situations affect the behavior of vice presidents and other professionals at DuMelon? What are the underlying implications for cost control of benefits? Use specific samples when applicable. 0-44 Incentive Pay in the Hotel Industry 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 $88 from the current $85, achieving a savings of 5% on all hotel costs, and reducing energy use by 10% by carefully managing the use of heating and air conditioning in unused rooms and by carefully managing the onsite laundry facility, among other means. The hotel's owner,Chapter 20 Management Compensation, Business Analysis, and Business Valuation 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 goals. In the past, she has been paid an annual salary of $72,000 with no incentive pay. The incentive plan the partners developed has each of the goals weighted as follows: Percent of Total Measure Responsibility Occupancy rate (also reflects guest service quality) 20% Operating within 95% of expense budget 30 Average room rate 30 Energy use 20 100% If Kristin achieves all of these goals, the partners determined that her performance should merit a bonus of $30,000. The partners also agree that her salary will need to be reduced to $60,000 because of the addition of the bonus. The goal measures used to compensate Kristin are as follows: Occupancy goal: 29,200 room-nights = 80% occupancy rate x 100 rooms x 365 days Compensation: 20% weight x $30,000 target bonus = $6,000 $6,000 : 29,200 = $0.2055 per room-night Expense goal: 5% savings Compensation: 30% weight x $30,000 target bonus = $9,000 $9,000 : 5 = $1,800 for each percentage point saved Room rate goal: $3 rate increase Compensation: 30% weight x $30,000 target bonus = $9,000 $9,000 : 300 = $30.00 for each cent increase Energy use goal: 10% savings Compensation: 20% weight x $30,000 target bonus = $6,000 $6,000 : 10 = $600 for each percentage point saved Kristin's new compensation plan will thus pay her a $60,000 salary plus 20.55 cents per room night sold plus $1,800 for each percentage point saved in the expense budget plus $30 for each ce increase in the average room rate plus $600 for each percentage point saved in energy use. T minimum potential compensation would be $60,000 and the maximum potential compensation Kristin would be $60,000 + $30,000 = $90,000. Required 1. Based on this plan, what will Kristin's total compensation be if her performance results are a. 30,000 room-nights, 5% saved, $3.00 rate increase, and 8% reduction in energy use? b. 25,000 room-nights, 3% saved, $1.15 rate increase, and 5% reduction in energy use? c. 28,000 room-nights, 0% saved, $1.00 rate increase, and 2% reduction in energy use? 2. Comment on the expected effectiveness of this plan. In what way, if at all, would you change the pensation weights? 0-2] 20-45 Incentive Pay Formula Development Use the concepts in Problem 20-44 to complete the fo