Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Take me to the text The manager of Sage Hotel determined the following costs for 2020. Room Operating Costs $1,999,000 Depreciation Expense $827,000 Property Taxes

Take me to the text The manager of Sage Hotel determined the following costs for 2020. Room Operating Costs $1,999,000 Depreciation Expense $827,000 Property Taxes Expense $306,000 Management Salaries $441,000 Other Operating Costs $2,067,000 Total Operating Costs $5,640,000 Sage Hotel has 230 rooms with an average occupancy rate of 75%. It operates 365 days per year. Do not enter dollar signs or commas in the input boxes. a) Determine the number of rooms to be sold during the year. Round your answer to the nearest whole number. Rooms to be Sold: Answer 62963 b) Based on the above information, what is the breakeven room rate for Sage Hotel? Round your answer to 2 decimal places. Breakeven Room Rate: Answer 89.58 c) What is the minimum daily revenue? Round your answer to 2 decimal places. Minimum Daily Revenue: Answer 15452.55 d) If Sage Hotel has two different sized rooms, 300 square feet and 400 square feet, what would be the minimum rate to charge for those rooms if there are 120 300-square-foot rooms? Round square feet to the nearest whole number. Round room rates to 2 decimal places. Total Square Feet: Answer 88000 Total Square Feet Sold: Answer Small Room Rate: Answer Large Room Rate

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

Step: 3

blur-text-image

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

Multinational Business Finance

Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett

11th Edition

0321357965, 978-0321357960

More Books

Students also viewed these Finance questions

Question

OUTCOME 4 Explain how labour relations differ around the world.

Answered: 1 week ago