Question
I need some help completing my homework assignment. Related to accounting serial case C7-73 Calculate breakeven and margin of safety after hotel renovation, could you
I need some help completing my homework assignment. Related to accounting serial case C7-73 "Calculate breakeven and margin of safety after hotel renovation", could you help me answer if the impactof the renovation on the company's level of riskisincreased,decreased or remain unchanged? Why?
Data:
After renovation: Room rate $149.00 Fix cost $5,000,000.00 Variable cost $27.00 Break even 40,984 Hotel room nights needed Margin of safety (Caesars): 154,417 Rooms 587 Rooms available after renovation 91.2% Caesars occupancy rate 214,255 Rooms available per year 195,401 Occupied rooms Margin of safety (Las Vegas): 144,990 Rooms 587 Rooms available after renovation 86.8% Las Vegas occupancy rate 214,255 Rooms available per year 185,973 Occupied rooms
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