Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help! Read the following scenario which will be the basis for part one of the assignment: Forrest owns Turkey Creek Country Club in Gainesville,

Please help!
image text in transcribed
image text in transcribed
Read the following scenario which will be the basis for part one of the assignment: Forrest owns Turkey Creek Country Club in Gainesville, Florida. The current greens fees for playing one round (18 holes) of golf on the course is $175.00 per player. To increase sales, Forrest partners with six different hotels that have created golf packages marketing to their own customers. Each hotel pays Forrest a different amount for the rounds of golf included in their package. Forrest wants to calculate a net round yield for each hotel using the following formula: Distribution costs Standard Fee-Net Round Fee. New Round Fee/ Standard Round Fee = Net Golf Round Yield (round to nearest %) Where Standard Fee (-) Distribution Costs to hotel = Net Golf Round Fee Step 1: Fill in the empty boxes on the chart below with the following information: NOTE: In your calculations, write dollar values as $##.## and do not round. For percentages, however, round to the nearest tenth. Turkey Creek Weekly Sales Recap: Source (A) Standard Fee (8) Net Golf Round Fee (0) Dist. Costs Net Golf Golf Runds per lote Round Yield Sold (D) (9) In Dollars In Percentage 135 Net Revenue IG) 592.00 Comfort $175.00 Suites Hamplon in 175.00 591.00 0.00 Hilton Garden $175.00 Inn Spring $175.00 Suites $175.00 Isso 585.00 10 UF H. $175.00 584.00 15 2:20 Average of 175.00 Total Step 2: Answer the following questions from your calculations: la. What is Forrest's average distribution cost for the hotel members? Ib. What is Forrest's average net round fee for all hotel members? Ic. What is Forrest's net revenue for each hotel member? Id. What is the overall average net round fee for the 220 rounds of golf Forrest received during the week from these six hotel channel members? Part 2 Read the following scenario which will be the basis for part two of the assignment: Flo is the managing owner of the The Pound Charburger "grill at the Gainesville Airport. Her menu is limited. She sells burgers, fries, and drinks, Last week, she served 1400 customers. Most of her guests order at least one burger and a beverage. Some ordered a burger, fries, and a beverage while still others only order fries and a beverage. Some data from last week includes: The CharBurger Weekly Account = 1400 Customers Served Step 1: Fill in the empty boxes on the chart with the following information: NOTE: In your calculations, write dollar values as S##.## and do not round. For percentages, however, round to the nearest tenth. Total Rev. Contribution Margin (6) Item - Selling Total Rey Item Item (A) Sold Price per Item Cost Contribution (B) (C) (D) (E) Margin (1 Burger 250 54.00 SUBS Fries 500S1.50 s 30 Beverage 1100 $1.25 S. 20 Total Step 2: Answer the following questions from your calculations: 2a. What is the item contribution margin for each item? Note: If the item contribution margin is defined as Selling Price (-) Item Cost = Item Contribution Margin 2b. What is the total contribution margin for each item sold? Step 3: Reflect on the data and answer the following question: 2c. Given the data presented, what is the lowest price at which Flo could sell a burger, fries and beverage combination and still equal the "per customer' served contribution margin she currently achieves? * Hint - find the per customer contribution margin and add that to the total item cost

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions