Required Information [The following information applies to the questions displayed below.] Kristin Helmud is the general manager of Highland Inn, a local mid-priced hotel with 100 rooms. Her job objectives include providing resourceful and friendly service to the hotel's guests, maintaining on 70% occupancy rate, improving the average rate received per room to $104 from the current $102, achieving o savings of 5% on all hotel costs, and reducing energy use by 10% by carefully managing the use of hesting and air conditioning in unused rooms and by carefully managing the onsite laundry facility, among other means. The hotel's owner, a partnership of seven people who own several hotels in the region, wants to structure Kristin's future compensation to objectively reward her for achieving these goals. In the past, she has been paid an annual salary of $88.000 with no incentive pay. The incentive plan the partners developed has esch of the goals weighted as follows: Percent of Total Responsibility 2x Measure Occupancy rate (also reflects guest service quality) Operating within 95% of expense budget Average room rate Energy use 30 3e ze 100% If Kristin schieves all of these goals, the partners determined that her performance should merita bonus of $46,000. The partners also agree that her salary will need to be reduced to $76.000 because of the addition of the bonus. The goal measures used to compensate Kristin are as follows: Occupancy goal: Compensation: Expense goal: Compensation: Room rate goal: Compensation: Energy use goal: Compensation: 25,55e room-nights - 78% occupancy rate 100 rooms 365 days 2ex weight $46,200 target bonus - $9,220 $9,220/25,552 - $0.3681 per room-night 5% savings 30% weight $46,228 target bonus - $13,990 $13,80075 - $2,768 for each percentage point saved $2 rate increase 30% weight $46,000 target bonus - $13,990 $13,390/200 - $69.ee for cach cent increase 10% savings zex weight $46,200 target bonus - 59,20 $9,209/10 - $920 for cach percentage point saved Kristin's new compensation plan will thus pay her a $75,000 salary plus 36.01 cents per room-night sold plus $2,760 for each percentage point saved in the expense budget plus $69 for each cent increase in the average room rate plus $920 for each percentage point saved in energy use. The minimum potential compensation would be $76,000 and the maximum potential compensation for Kristin would be $76,000 - $46,000 = $122.000 Required: 1. Based on this plan, what will Kristin's total compensation be if her performance results are (Round your answers to the nearest whole dollar amount.) 8.30.000 room-nights, 5% saved, $2.00 rete incresse, and 8% reduction in energy use? b. 25,000 room-nights, 39 saved. $1.15 rate increase, and 5% reduction in energy use? c. 28.000 room-nights, 0% saved, $1.00 rete increase, and 2% reduction in energy use? b. Total compensation Total compensation Total compensation
