The Hubbart Room Rate Formula

Operating Expenses 2,000,800

Taxes and Insurance 400,000

Depreciation 350,750

Reasonable ROA 900,000

Total __________________________

Less Income from other sources 340,000

Amount needed from room sales $ _________________________

Revenue from room sales needed $ ________________________

Number of rooms available (Per Day) 275

Rooms available per year (item 2x 365) __________________________

Less allowance for vacancies (@ 25%)________________________

Number of rooms to be sold (@75%) _______________________

ADR per room to get ROA (item1/item5) $

11. Each page you can see 5 questions. 12. Is there any technical difficulty let me know then and there via 200M. After finished your exam if you said technical difficulty. which is. not going & be accepted. 13. After exam end no more class for today 14. Exam time- 80 minutes