Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

How did they figure out the Weighted Average Daily Rate and Weighted Average Contribution Margin? Answer is given below Total Average daily rate Variable cost

How did they figure out the Weighted Average Daily Rate and Weighted Average Contribution Margin? image text in transcribed
Answer is given below Total Average daily rate Variable cost Contribution Standard rooms $238.25 $154.86 $83.39 Deluxe rooms $381.20 $221.10 $160.10 Sales mix Weighted Average daily rate Weighted average contribution margin Weighted average contribution margin 60% 142.95 $50.03 40% 152.48 $64.04 100% 295.43 A $114.07 B 38.61%A/B Break-even Room nights Fixed costs Weighted average contribution margin $152,480 $114.07 1,337 Total Standard rooms 60% 802 Deluxe rooms 40% 535 Sales mix Room nights for Break even point 100% 1,337 Revenue b Room revenue for the hotel Fixed costs +Target Profit Weighted average contribution margin $202,480 38.61% $524,385 Room revenue to be generated to cover this cost $12,949 Revenue Total Room revenue to cover advertising cost Fixed costs + Advertising cost $157,480 Weighted average contribution margin 38.61% $407,843 Revenue Existing sales to recover fixed cost Fixed cost Weighted average contribution margin $152,480 38.61% $394,894

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Retirement Income Recipes In R From Ruin Probabilities To Intelligent Drawdowns

Authors: Moshe Arye Milevsky

1st Edition

3030514331, 9783030514334

More Books

Students also viewed these Accounting questions

Question

Where does the person work?

Answered: 1 week ago

Question

Identify the human resource management functions.

Answered: 1 week ago

Question

Describe who performs human resource management activities.

Answered: 1 week ago