I need help in this homework but I am almost complete but I want to check and correct where I couldn't get the solution.

Chapter Six - Part Two - Discussion Questions (Pg. 288) 6.11 Why is loss of sales from hotel rooms not occupied a greater problem than loss of sales from restaurant customers not showing up? The fixed cost for a restaurant are lower than the fixed cost for a hotel, also a hotel only sells one room a day and a restaurant has many customers a day by turning seats over and over. 6.13 Why is the averge room rate diff erent from the rack rate? Rack rate is the full price of a room before the discounts are applied 6.14 Describe how a double occupancy percentage for rooms is calculated. number of guestumber ofoccupied rooms 6.16 Define the terms rack rate and potential average room rate. Potential average room rate is the revenue the hotel would receive if they were multiple and at 100%. Rack rate is the full price rooms are sold to customers before discounts are applied. 6.17 Define the term elasticity of demand. This is when demand for a good or service varies with its price. Sales increase with drop in prices and decrease with rise in prices. Change in demand based on change in price. 6.18 State the equation for calculating elasticity of demand.(% change in quantity demanded)/(% change in price) 6.19 What implications does the breakdown of costs into fixed and variable categories have on the pricing decision? Fixed cost exist regardless of the revenue level. Variable cost are a function of revenue, pricing must cover variable cost and fixed cost in the long run. Chapter Six - Part Two - Exercises (Pg. 289-290) E6.7 A hotel reported 18,760 rooms sold with a total of 23,450 guests. What was the double occupancy rate? Guests Rooms occupied Rooms with more than 1 guest 23,450 18,760 4,690 Double Occupancy Rate 25.0% Double Occupancy Formula: GuestsRooms Occupied. Calculation: 23,450 18,760 18,760 18,760 4,690 25.0% E6.8 A 50 room hotel has a 74% occupancy rate and projected annual sales of $842,712. What is the average room rate? Number of rooms Occupancy rate Revenue Rooms sold Average Room Rate 50 74.0% $842,712 13,505 Average Room Rate Formula: Equation: Total room revenue/Room's Occupancy % 365=Average Room Rate Calculation: $842,712 $842,712 $62.40 50 74% 365 13,505 $62.40 E6.10 Using the following information, determine the average single and double room rates. Rooms sold per day Rooms double occupied % double occupied Spread on room rate Average daily revenue Average Daily Rate (ADR) 60 24 40 $12.00 $2,988.00 $49.80 Single Occupancy Rate $45.00 Double Occupancy Rate $57.00 Verify the calculated rates Number Single rooms Double rooms Daily Revenue 36 24 Single Room Rate Equation: Calculating single and double room rates with a $12.00 spread. Rooms sold per day 60 Double rooms per day (24) Single rooms per say 36 Calculation: 36x + 24 (x + $12.00) = $2,988 36x + 24x + $288= $2,988 60x= $2,988 $288 = $2,700 x= $2,700 / 60 = $45.00 Single rate Single rate $45.00 + $12.00 = $57.00 double rate Proof Dollars 36 singles$45.00=$1,620 $1,620.00 24 doubles$57.00= 1,368 $1,368.00 Average daily rooms revenue =$2,988 $2,988.00 Chapter Six - Part Two - Problems (Pg. 293) P6.7 Use the following information for a 40 room hotel with a 70% occupancy rate and a 27% variable cost rate (operating expenses, wages, supplies, laundry, etc.) First determine the Total Known Fixed Costs Cost Category Administrative and General Marketing Energy Repairs and Maintenance Property Taxes Insurance Mortgage Interest: 8% x $601,000 Mortgage Interest: 12% x $402,000 Building Depreciation: 5% x $1,860,000 Equipment Depreciation: 20% x $382,000 Fixed or Variable % Fixed Fixed Fixed Fixed Fixed Fixed Fixed Fixed Fixed Fixed Dollars $38,300 28900 35100 28800 17600 4800 48080 48240 9300 76400 Total Known Fixed Costs $335,520 419220 Next, calculate the Offsetting Income or Loss from support departments Telephone Income/(Loss) Food & Beverage Income/(Loss) Income Income (9,700) 103,200 Total Offsetting Income/(Loss) 93,500 Combine the costs and income to obtain the Net Known Fixed Costs Total Known Fixed Costs Total Offsetting Income/(Loss) Fixed Income 419,220 93,500 Net Known Fixed Costs 325,720 Now determine the Pre-Tax Income required to generate the desired 15% Return on the Owner's $280,000 investment in the hotel using a 25% income tax rate. Net Income: 15% ROI on $280,000 Income 42,000 Pre-Tax Income before 25% Taxes 56,000 Formula for Pre-Tax Income: Add the Required Pre-Tax Income to the Net Known Fixed Costs Net Known Costs + Required Income 381,720 Determine Total Required Revenue, given the above and a 27% Variable Cost Rate Total Required Revenue @27% Variable Costs $522,904 Formula for Required Revenue: What is the Required Average Daily Room Rate to achieve this Revenue? Required Revenue Rooms Days Open Occupancy Rate Number of Rooms Sold $522,904 40 365 70.0% 10,220 Average Daily Room Rate $51.16 Formula for Average Daily Rate: If the hotel operated at a 25% double occupancy rate and a $15 spread between single and double rates, what are those rates? Rooms Sold per Day Rooms Double Occupied % Double Occupied Spread on Room Rate Average Daily Revenue Average Daily Rate (ADR) 28 7 25% $15.00 $1,432.61 $51.16 Single Occupancy Rate $47.41 51.16-3.75 Double Occupancy Rate $62.41 Formula for Single Room Rate: Verify the calculated rates Number Single rooms Double rooms Daily Revenue 21 7 Dollars $995.71 $436.90 $51.16 Chapter Six - Part Two - Problems (Pg. 293) P6.8 Use the following information for a 30 room hotel with a 70% occupancy rate First determine the Total Known Fixed Costs Cost Category Indirect Costs Mortgage Interest: 10% x $359,000 Mortgage Interest: 14% x $140,000 Building Depreciation: 5% x $632,000 Equipment Depreciation: 20% x $117,000 Dollars $44,800 35,900 19,600 31,600 23,400 Fixed Fixed Fixed Fixed Fixed Total Known Fixed Costs $155,300 Next, calculate the Offsetting Income or Loss from support departments Restaurant Income Income 12,000 Total Offsetting Income/(Loss) 12,000 Combine the costs and income to obtain the Net Known Fixed Costs Total Known Fixed Costs Total Offsetting Income/(Loss) Fixed Income 155,300 12,000 Net Known Fixed Costs 143,300 Now determine the Pre-Tax Income required to generate the desired 12% Return on the Owner's $520,000 investment in the hotel using a 24% income tax rate. Net Income: 12% ROI on $520,000 Income 6,240 62400/1-tax rate Pre-Tax Income before 24% Taxes 82,105 Formula for Pre-Tax Income: Add the Required Pre-Tax Income to the Net Known Fixed Costs Net Known Costs + Required Income 225,405 Now add the Direct Costs to determine the Total Required Revenue Net Known Costs + Required Income Direct Costs 225,405 59,300 Total Required Revenue 284,705 What is the Required Average Daily Room Rate to achieve this Revenue? Required Revenue Rooms Days Open Occupancy Rate Number of Rooms Sold $284,705 30 365 70.0% 7,665 Average Daily Room Rate $37.14 308705.26 (I had an issue and this might be the right number) 7.2 Formula for Average Daily Rate: If the hotel operated at a 60% double occupancy rate and a $12 spread between single and double rates, what are those rates? Rooms Sold per Day Rooms Double Occupied % Double Occupied Spread on Room Rate Average Daily Revenue Average Daily Rate (ADR) 21 30 rooms x 70% 13 actually 12.6 60% $12.00 $780.01 $37.14 Single Occupancy Rate $29.94 Double Occupancy Rate $41.90 Formula for Single Room Rate: Verify the calculated rates Number Single rooms Double rooms Daily Revenue 8 13 Dollars $251.53 $528.49 $780.01 8.4 is actual number 12.6 Chapter Six - Part Two - Problems (Pg. 294-295) P6.12 The Inviting Inn has 500 available guest rooms. For a certain week next month the anticipated demand for transient guest rooms and committed groups sales is as follows: Total Rooms Available M 500 T 500 W 500 Th 500 F 500 S 500 Su 500 Total 3,500 Expected transient (walk-in) demand @ $80ight Group sales committed @ $60ight Total Expected Room Sales 200 200 400 200 200 400 200 300 500 200 300 500 100 100 200 50 100 150 50 100 150 1,000 1,300 2,300 Rooms available after expected transient & group sales 100 100 0 0 300 350 350 1,200 The Inn has the opportunity to book another 100 person group for Tues/Wed/Thur/Fri at $60ight per guest. However, this might displace some transient guests. Potential additional group sales @ $60ight Total room demand (transient, committed groups & potential groups) Note: Maximum rooms available = 500 Transient business displaced if additional group is booked The marginal cost for rooms sold is $15ight. Calculate the additional marginal income from booking the 100 person group for the four nights: Potential revenue gain from booking the additional group @ $60ight Less marginal cost of rooms @ $15ight Net gain from booking the additional group $0 $100 $100 $100 $100 $0 $0 ($100) $0 $100 $100 ($200) ($350) ($350) Calculate the potential lost income caused by displacing transient guests. Lost revenue from transient guests displaced @ $80ight Less marginal cost of rooms @ $15ight Net loss from transient guests displaced Compute the net gain or loss from booking the additional group. Gain or (loss) from additional booking Should the Inviting Inn agree to book the new group for four nights? yes $5,000