{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-29T02:37:47-04:00", "answer_date": "2024-06-29 02:37:47", "is_docs_available": null, "is_excel_available": null, "is_pdf_available": null, "count_file_available": 0, "main_page": "student_question_view", "question_id": "4450499", "url": "\/study-help\/questions\/the-empire-hotel-is-a-fullservice-hotel-in-a-large-4450499", "question_creation_date_js": "2024-06-29T02:37:47-04:00", "question_creation_date": "Jun 29, 2024 02:37 AM", "meta_title": "[Solved] The Empire Hotel is a full-service hotel | SolutionInn", "meta_description": "Answer of - The Empire Hotel is a full-service hotel in a large city. Empire is organized into three departments that are treated | SolutionInn", "meta_keywords": "empire,hotel,full-service,large,city,organized,three,departments,treated,investment,centers,budget", "question_title_h1": "The Empire Hotel is a full-service hotel in a large city. Empire is organized into three departments that are treated as investment centers. Budget information", "question_title": "The Empire Hotel is a full-service hotel in a large city. Empire", "question_title_for_js_snippet": "The Empire Hotel is a full service hotel in a large city Empire is organized into three departments that are treated as investment centers Budget information for the coming year for these three departments is shown as follows The managers of each ofthe departments are evaluated and bonuses are awarded each year based on ROI Empire Hotel Hotel Rooms Restaurants Health Spa Average investment 3 7,809,000 $5,102,000 S 964,000 Sales revenue $10,000,000 $2,000,000 $ 600,000 Operating expenses 8,806,000 1,121,000 412,000 Operating earnings $ 1,194,000 $ 879,000 $ 183,000 Required at Compute the ROI for each department Use the DuPont method to analyze the return on sales and capital turnover Assume the Health Spa is considering installing new exercise equipment Upon investigating, the manager of the division finds that the equipment would cost $40,000 and that operating earnings would increase by $8,000 per year as a result of the new equipment b 1 What would be the ROI of investment in the new exercise equipment and Health Spa b 2 Would the manager of the Health Spa be motivated to undertake such an investment c 1 Compute the residual income for each department if the minimum required return for the Empire Hotel is 17 percent c 2 What would be the impact of the investment on the Health Spa's residual income 6 Answer is complete but not entirely correct Complete this question by entering your answers in the tabs below Complete this question by entering your answers in the tabs below Req A Req B1 Req B2 Req C1 Req C2 Compute the ROI for each department Use the DuPont method to analyze the return on sales and capital turnover (Round your percentage answers to 2 decimal places (i e , 0 1234 should be considered as 12 34 )) Capital ROI Return on Departments Sales Turnover Hotel Rooms 15 29 11 94 128 05 X Restaurants 17 22 43 95 39 20 Health Spa 19 50 31 33 62 24 Reg A Req B1 Screenshotx Answer is complete but not entirely correct Complete this question by entering your answers in the tabs below Req A Req B1 Req B2 Req C1 Req C2 What would be the impact of the investment on the Health Spa's residual income Impact of the $ investment (25,320) X Decrease in residual loss Screenshot", "question_description": "
\"image\"image\"image<\/div><\/div><\/div><\/figure> The Empire Hotel is a full-service hotel in a large city. Empire is organized into three departments that are treated as investment centers. Budget information for the coming year for these three departments is shown as follows. The managers of each ofthe departments are evaluated and bonuses are awarded each year based on ROI. Empire Hotel Hotel Rooms Restaurants Health Spa Average investment 3 7,809,000 $5,102,000 S 964,000 Sales revenue $10,000,000 $2,000,000 $ 600,000 Operating expenses 8,806,000 1,121,000 412,000 Operating earnings $ 1,194,000 $ 879,000 $ 183,000 Required: at. Compute the ROI for each department. Use the DuPont method to analyze the return on sales and capital turnover. Assume the Health Spa is considering installing new exercise equipment. Upon investigating, the manager of the division finds that the equipment would cost $40,000 and that operating earnings would increase by $8,000 per year as a result of the new equipment. b-1. What would be the ROI of investment in the new exercise equipment and Health Spa? b-2. Would the manager of the Health Spa be motivated to undertake such an investment? c-1. Compute the residual income for each department if the minimum required return for the Empire Hotel is 17 percent. c-2. What would be the impact of the investment on the Health Spa's residual income? 6 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req C1 Req C2 Compute the ROI for each department. Use the DuPont method to analyze the return on sales and capital turnover. (Round your percentage answers to 2 decimal places (i.e., 0.1234 should be considered as 12.34.)) Capital ROI Return on Departments Sales Turnover Hotel Rooms 15.29 % 11.94 % 128.05 X % Restaurants 17.22 % 43.95 % 39.20 % Health Spa 19.50 % 31.33 % 62.24 % Reg A Req B1 > Screenshotx Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req C1 Req C2 What would be the impact of the investment on the Health Spa's residual income? Impact of the $ investment (25,320) X Decrease in residual loss Screenshot", "transcribed_text": "", "related_book": { "title": "Accounting Principles", "isbn": "1119491630, 978-1119491637, 978-0470534793", "edition": "10th Edition", "authors": "Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/54.jpg", "uri": "\/textbooks\/accounting-principles-10th-edition-54", "see_more_uri": "" }, "free_related_book": { "isbn": "3030313980", "uri": "\/textbooks\/demand-response-application-in-smart-grids-concepts-and-planning-issues-volume-1-1st-edition-9783030313982-9783030313999", "name": "Demand Response Application In Smart Grids Concepts And Planning Issues Volume 1", "edition": "1st\u00a0Edition" }, "question_posted": "2024-06-29 02:37:47", "see_more_questions_link": "\/study-help\/questions\/business-management-leadership-2023-June-05", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/find-the-values-of-955-for-which-y-erx-satisfies-the-equation", "description": "Find the values of for which y = erx satisfies the equation y + y = y?", "stars": 3 }, { "url": "\/study-help\/biostatistics\/if-all-of-the-pairwise-correlations-between-the-response-variable-1981362", "description": "If all of the pairwise correlations between the response variable and the explanatory variables are between (a) 0.5 and 0.8, is it still possible to have a collinearity problem among the explanatory...", "stars": 3 }, { "url": "\/the-following-data-give-the-selling-price-square-footage-number-of", "description": "The following data give the selling price, square footage, number of bedrooms, and the age of the houses that have sold in a neighborhood in the past 6 months. 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