Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The manager of Thyme Hotel determined the following costs for 2 0 2 0 . Room Operating Costs $ 2 , 4 2 5 ,

The manager of Thyme Hotel determined the following costs for 2020.
Room Operating Costs $2,425,000
Depreciation Expense $831,000
Property Taxes Expense $358,000
Management Salaries $496,000
Other Operating Costs $2,064,000
Total Operating Costs $6,174,000
Thyme Hotel has 210 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
b) Based on the above information, what is the breakeven room rate for Thyme Hotel?
Round your answer to 2 decimal places.
Breakeven Room Rate: Answer
c) What is the minimum daily revenue?
Round your answer to 2 decimal places.
Minimum Daily Revenue: Answer
d) If Thyme 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 100300-square-foot rooms?
Round square feet to the nearest whole number.
Round room rates to 2 decimal places.
Total Square Feet: Answer
Total Square Feet Sold: Answer
Small Room Rate: Answer
Large Room Rate: Answer

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

Contemporary Auditing

Authors: Michael C. Knapp

10th edition

978-1285066608, 128506660X, 978-1305445161, 1305445163, 978-1305970816

More Books

Students also viewed these Accounting questions

Question

What is your theoretical orientation? (For Applied Programs Only)

Answered: 1 week ago