Integrative Exercise F.elevant Aralysis, Cost Eased Pricing, Cost Eehaviot, and Net Presert value Analysis for Superior Stay Fesorts 5pecial-Order Otter Melevant Analysis Superior Stay Resorts provides luxurious hotel acrommodations to its high-end custemer base. Superier measures business vallime by the total number of occupied guest rocm nights durinc the year. For each of the past several vears. superior 's sales have been consideratly less than the expected annual volume of 1,200 , ono total guest room nights. Therefore, the companv ents each year with significant unused capacity. Siven its high-fixed cost stre-tire, Supccior's profitability hiages on increasing the number of occupied guest ruem nights top pruperty-Premier Resort-sits adjacent to an exsansive cutdoor evert spare -the earnyard-that husts lape festivals, music consens beat and RU shons, rodeos, fars, and various chher athbotic cormpetitions. Superior received an offer from Bannard's manapement to rent a ojo fremicr Resart guest fooms for its December erent autendees at a frice uf s: 30 oer ouest room. Jack was excited, neting that, "This is a great way for us to make use uf one of car most premiec properies1". c. Using yeut vatiables thogr fecuireneent \&a. sclect out rubt A 2. Create a spreadihed that cartains the model inquts you induded in you completed table (from Requirement 1), using your spreadsheet. a. Calculate the rrievand rewohties astotiated with the speciat-order nffr. b. Caleulate the reiering corts asscolated whin the specil-orter offer. 1 ; 1 The relerdnt cort is than the felevast reveoce cffered be Esmyaid, thakica the relewant (or in cram trital) arofit af thetialichit chetis Cent-esud pricing The relevant cost inturled is. the relevant revenue of that be generated from eamyard, mshing the relevant (or ineremental) pretit of positive- Therelore, Superior - accept the specist-order offer i Barnpard : agree to pay that results tram Superiar's cost-plus pricind method. Incorporatind a Long-Term Horizen inte the Decision Analysis tradtionai, shorf-tem acialysis, Jack wonders whether ic might be more prenitable over the long tern to dowasize the comgany by reoucino its service capociev tite. its total gaeit room Thetefore, Jack. has eecided to use a 5 -vear time horizon in his leag-term decision analvsis. He has ldentifed the follawing inhornation tegardine capacity downsiking: Therefort, Jack must chaose betwetn the foilowing twe alternatives: 2. Fejert the spteialorder etfer and dochsize as descibed above (i.e. the togansiging atternative). 9. Assure that Scptrice payd for at costs with cash. also. aseme that o 10% gicount rate, a 5-xadr time herizon, and ali eash fows oscur a: the end of the vear whing an AFy aeproser ts sinouna futire cask flows to present value wherab etite is set by atathe ue relevant variable cests by 40% 5. Ta assist 1ack, hitate a speeatihest centaining a nodel (oc formula\} with the costs (Le., the independent watiables\} to use in forecasting the unit guest ronm nrice \{i.e, the dependett vatiatle) that superioe should chace earnvard ascording to ins pelding method. Complete the following tatin with the detalls of vour model (use as mary bollet points as neceasary) 2. Sfuect the indepondent variables (withaut dnllar amnuats) in vour model: D. If 5 beerior were to arcep the special-arder cefer whlth wariable is incuded in your nodels c. USing vour variables from Froquirtment 5d, shite at roum modelt if esteratidesention of that The relevant cost intured is the relevant revenue of that be qenerated fram Aamyard, making the relevant (or incremental) profit of positive. Therefore, Stiperint accept the special-order wer is Bancuard : agree to pay that results from Superitur 3 cost-plus pricing method. Incorporating a Lony-Teru Horizon into the Decision Analysis traditianal, shart-tem arialysis, Jack wenders thether is might be more prefitable over the long term to downsize the comgany by reduciog its service capacier 54,200,000. Therefors, Jack in trt choose between the following twe aliethativen: 2. heject the spetiahorder cffer and doansith as dostribed above (i.e.. the doonsiaing alternative). apprasen to estipart future cain flows to eresert value Incorporating a Lond-Term Horizon inte the Decision Analysis Uaditional, short term aralysis, Jack, weaders whether is miat be mete peafiable aver the loeg term to doresize the company by redudng its sarvice capacity ate. its toeal ouest rocm Night capacitw), the if aware that dounsiring requites a multhear time harizen hocatse companies usuals cannot increase of decrease fixed assers (such as preperties) every year. therefore, lack must chaose between the folowing twa alternativep: 1. Atsept the special-ordec cffer each vear and sam a $51.0, avoo relerant profit for each cf the next 5 vears (i.e. the ongoing speilal-order altematize), of apptoach to tiscourit future cast floss to presert value Easec of the Upy of iteqtement 99 and 66 , the is eitidiates to prosicte In sddition, Jack. met, wath seieral of Suberio's key service area magagers and dacovered the foliowing acditienat iefcrration: - Superice leases the fremier Resort through a multivear contract that was renewed at the brgining af the current woar. the vear. The total rooth inspection costs shom in tte grevigus table reoresent soo isgeections during the zast. uses a part tulat facility. The terms of the special-order after whuld require Suneriar bear tho $120,000 cost of the Safety comruithee's approval visit. gecide whether to actept or reject it. Required: 1. Condutt a fele rant Malptit of the sptcial-crder effer tiv calesiating the followira: many tullet ptints at teeassiryl Inteprative trerdse Special-Orde ofter Relevint Analysts - The sisdal-order could befufiled wholout inturleg ativ addibional nadketirg ar custumer berviok coets. in the provkus tati reprecert soo inspectioni dulng the rear. Metwirea 1. Consoct a rolevavt andivis of the Topsat-arder offer by talodath fen folbeing: a. Seich she indesesdem veriables (webout dolar ameunta) io vout moded 1. Criculate the reieme feveries aspotisted inth the toedin-order oillem The relevant cest le Sucerior't sueral Cost-eaced prickis c. Gsing Fow yerisbles trum Roquronent 5 , wite ext your modei' caiculatud in revponbe to Requremant 2b1 unit gust rootr arke The thinusit este incuried is the receitere renent if thet noedet the repda-etiter efter if bartwarid facorperating a leeg-Term keriron iete the focislen Analysk tegarting tipockr dewnising Incorpocutiog a Long-Term Horiron inte the Decision Anshyis regading cagdity downsizinge - Also, if it thooses to downsize its casartic, Superior's snnusi property lesse and kesurance cost will decrease from 94,900,000 to $4,200,000 Thereford, lack mist choose teatween the foloming two aternatives: 2. Heject the specis-order ofler and dowreste at desoribed sbove (ie, the dparsiging abenetirt) valus Based an the spy of naqurements oe and abe, the: Integrative Exercise F.elevant Aralysis, Cost Eased Pricing, Cost Eehaviot, and Net Presert value Analysis for Superior Stay Fesorts 5pecial-Order Otter Melevant Analysis Superior Stay Resorts provides luxurious hotel acrommodations to its high-end custemer base. Superier measures business vallime by the total number of occupied guest rocm nights durinc the year. For each of the past several vears. superior 's sales have been consideratly less than the expected annual volume of 1,200 , ono total guest room nights. Therefore, the companv ents each year with significant unused capacity. Siven its high-fixed cost stre-tire, Supccior's profitability hiages on increasing the number of occupied guest ruem nights top pruperty-Premier Resort-sits adjacent to an exsansive cutdoor evert spare -the earnyard-that husts lape festivals, music consens beat and RU shons, rodeos, fars, and various chher athbotic cormpetitions. Superior received an offer from Bannard's manapement to rent a ojo fremicr Resart guest fooms for its December erent autendees at a frice uf s: 30 oer ouest room. Jack was excited, neting that, "This is a great way for us to make use uf one of car most premiec properies1". c. Using yeut vatiables thogr fecuireneent \&a. sclect out rubt A 2. Create a spreadihed that cartains the model inquts you induded in you completed table (from Requirement 1), using your spreadsheet. a. Calculate the rrievand rewohties astotiated with the speciat-order nffr. b. Caleulate the reiering corts asscolated whin the specil-orter offer. 1 ; 1 The relerdnt cort is than the felevast reveoce cffered be Esmyaid, thakica the relewant (or in cram trital) arofit af thetialichit chetis Cent-esud pricing The relevant cost inturled is. the relevant revenue of that be generated from eamyard, mshing the relevant (or ineremental) pretit of positive- Therelore, Superior - accept the specist-order offer i Barnpard : agree to pay that results tram Superiar's cost-plus pricind method. Incorporatind a Long-Term Horizen inte the Decision Analysis tradtionai, shorf-tem acialysis, Jack wonders whether ic might be more prenitable over the long tern to dowasize the comgany by reoucino its service capociev tite. its total gaeit room Thetefore, Jack. has eecided to use a 5 -vear time horizon in his leag-term decision analvsis. He has ldentifed the follawing inhornation tegardine capacity downsiking: Therefort, Jack must chaose betwetn the foilowing twe alternatives: 2. Fejert the spteialorder etfer and dochsize as descibed above (i.e. the togansiging atternative). 9. Assure that Scptrice payd for at costs with cash. also. aseme that o 10% gicount rate, a 5-xadr time herizon, and ali eash fows oscur a: the end of the vear whing an AFy aeproser ts sinouna futire cask flows to present value wherab etite is set by atathe ue relevant variable cests by 40% 5. Ta assist 1ack, hitate a speeatihest centaining a nodel (oc formula\} with the costs (Le., the independent watiables\} to use in forecasting the unit guest ronm nrice \{i.e, the dependett vatiatle) that superioe should chace earnvard ascording to ins pelding method. Complete the following tatin with the detalls of vour model (use as mary bollet points as neceasary) 2. Sfuect the indepondent variables (withaut dnllar amnuats) in vour model: D. If 5 beerior were to arcep the special-arder cefer whlth wariable is incuded in your nodels c. USing vour variables from Froquirtment 5d, shite at roum modelt if esteratidesention of that The relevant cost intured is the relevant revenue of that be qenerated fram Aamyard, making the relevant (or incremental) profit of positive. Therefore, Stiperint accept the special-order wer is Bancuard : agree to pay that results from Superitur 3 cost-plus pricing method. Incorporating a Lony-Teru Horizon into the Decision Analysis traditianal, shart-tem arialysis, Jack wenders thether is might be more prefitable over the long term to downsize the comgany by reduciog its service capacier 54,200,000. Therefors, Jack in trt choose between the following twe aliethativen: 2. heject the spetiahorder cffer and doansith as dostribed above (i.e.. the doonsiaing alternative). apprasen to estipart future cain flows to eresert value Incorporating a Lond-Term Horizon inte the Decision Analysis Uaditional, short term aralysis, Jack, weaders whether is miat be mete peafiable aver the loeg term to doresize the company by redudng its sarvice capacity ate. its toeal ouest rocm Night capacitw), the if aware that dounsiring requites a multhear time harizen hocatse companies usuals cannot increase of decrease fixed assers (such as preperties) every year. therefore, lack must chaose between the folowing twa alternativep: 1. Atsept the special-ordec cffer each vear and sam a $51.0, avoo relerant profit for each cf the next 5 vears (i.e. the ongoing speilal-order altematize), of apptoach to tiscourit future cast floss to presert value Easec of the Upy of iteqtement 99 and 66 , the is eitidiates to prosicte In sddition, Jack. met, wath seieral of Suberio's key service area magagers and dacovered the foliowing acditienat iefcrration: - Superice leases the fremier Resort through a multivear contract that was renewed at the brgining af the current woar. the vear. The total rooth inspection costs shom in tte grevigus table reoresent soo isgeections during the zast. uses a part tulat facility. The terms of the special-order after whuld require Suneriar bear tho $120,000 cost of the Safety comruithee's approval visit. gecide whether to actept or reject it. Required: 1. Condutt a fele rant Malptit of the sptcial-crder effer tiv calesiating the followira: many tullet ptints at teeassiryl Inteprative trerdse Special-Orde ofter Relevint Analysts - The sisdal-order could befufiled wholout inturleg ativ addibional nadketirg ar custumer berviok coets. in the provkus tati reprecert soo inspectioni dulng the rear. Metwirea 1. Consoct a rolevavt andivis of the Topsat-arder offer by talodath fen folbeing: a. Seich she indesesdem veriables (webout dolar ameunta) io vout moded 1. Criculate the reieme feveries aspotisted inth the toedin-order oillem The relevant cest le Sucerior't sueral Cost-eaced prickis c. Gsing Fow yerisbles trum Roquronent 5 , wite ext your modei' caiculatud in revponbe to Requremant 2b1 unit gust rootr arke The thinusit este incuried is the receitere renent if thet noedet the repda-etiter efter if bartwarid facorperating a leeg-Term keriron iete the focislen Analysk tegarting tipockr dewnising Incorpocutiog a Long-Term Horiron inte the Decision Anshyis regading cagdity downsizinge - Also, if it thooses to downsize its casartic, Superior's snnusi property lesse and kesurance cost will decrease from 94,900,000 to $4,200,000 Thereford, lack mist choose teatween the foloming two aternatives: 2. Heject the specis-order ofler and dowreste at desoribed sbove (ie, the dparsiging abenetirt) valus Based an the spy of naqurements oe and abe, the