Howard is torn about whether to fully quit his nursing job. He is contemplating work part-time and oversee the hotel part-time. His salaries would grow by 5% a year over his lifetime as a nurse. He was planning on purchasing a home with his girlfriend in Vancouver, but they are still working on saving 25% of their down payment. Howard's hospital has also offered to allow him to work part time for $30,000 a year so that he has time to assist with the hostel. If he pursues this scenario, he has talked to a former hotel manager, Emanuel who is willing to do the job and keep 35% of all the revenues generated. Alternatively, Emanuel wants a salary of $78,000 a year for working full-time to oversee the operations of the hotel.

Howard doesn't understand the difference between a fixed cost and a variable cost. He wants information about his product and period costs and seeks to understand how much profit he is making on renting out each room.

During the low seasons between mountain biking and ski season, he finds interest in the rooms diminish. He understands that if he reduces the price of the rooms, there is a possibility that demand will increase. He is curious about how low he can price the rooms during this period to incentivize increased room bookings and decreasing vacancies during these slower periods.

Currently, on August 31, 2022, H2 Hostel has $70,000 of cash in the bank. He wants to know a rough quarterly budget assuming that all transactions are completed in cash. At what point will Howard need to borrow money for H2 Hostel? He has spoken with the bank and can borrow money at 7% interest rate. The interest and 20% of the principal payment must be paid back every year to keep the loan in good standing.

Howard has been approached by a large American Company the Chariott Hotels, to purchase the hostel and rebrand it as their chain of hotels for a value of $2,500,000. Alternatively, The Chariott Hotels are willing to give Howard and his family a total of 2,500 shares worth $100 each to become a shareholder of Chariott's Company. Chariott Hotels has stated that it will pay dividends of $30 per share each year plus a 5% profit share of the money it makes from operating the hotels.

Upon hearing this offer Howard's family friend Francis offered Howard $350,000 cash to invest in 50% of the hotel's shares. He said he wanted to run the company as a partnership and split the company's profits two ways between himself and Howard. Francis does not want Howard's parents involved in this transaction. Francis is a software engineer but really wants to get involved in the day-to-day business operations and after doing a walkthrough of the hotel has a lot of items that he wants to change about the way the hotel looks and is operated. He keeps talking about automating check in and check out processes and replacing housekeepers with robotic vacuum cleaners. He claims this will diminish overhead costs and improve margins by getting rid of needless staff working at the front desk and as housekeeping. Howard feels uncertain about all these changes but wants your assistance analyzing his offer.

When talking to Susan, Howard learned that there has been a lot of turnovers in the cleaning and housekeeping staff. Susan said they would work for 6 months and then put in their notice. Before Shawn's accident, Susan was looking at outsourcing the cleaning to two different local companies. Quick Clean Corp. has provided H2 Hostels with a flat fee of $30 per day that they are on-site and an additional fee of $8 per hour. They anticipate that they can clean the rooms more quickly - 1 hour for the shared rooms and 0.5 hours for the private rooms. They would run the laundry, but the laundry costs would not change. Canada's Squeaky Squamish Corp. have also provided a quote. They would charge a flat fee of $100 per hour for 8 hours a day to clean and do laundry. They would take care of all 8 rooms and laundry. They will try their best to reach every room, but if not, it would be the job of the concierge to clean the room and complete the laundry. Howard is unsure of which option to proceed with.

Howard also wants someinsight into the role of a business manager. Some tips on performance evaluation of employees and business ethics which relate to his situation would be greatly appreciated