Question
Imagine that BellDunn Resort Hotel has 40 rooms available to sell on daily basis with occu-pancy of 45.00%. The management has projected the hotels total
Imagine that BellDunn Resort Hotel has 40 rooms available to sell on daily basis with occu-pancy of 45.00%. The management has projected the hotels total revenues as room revenues of $510,500, food and beverage (F&B) revenues of $62,200, catering revenues of $20,000, and other revenues of $40,000. It is also calculated that 32.00% of the total revenues is the total expenses for BellDunn. If the income tax is 40.00%, what is the projected after-tax average daily room rate (ADR) for the next year based on the net income for BellDunn (assume that there are 365 days in a year)?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started