Question
The manager of Thyme Hotel determined the following costs for 2020. Room Operating Costs $2,125,000 Depreciation Expense $862,000 Property Taxes Expense $389,000 Management Salaries $428,000
The manager of Thyme Hotel determined the following costs for 2020.
Room Operating Costs | $2,125,000 |
Depreciation Expense | $862,000 |
Property Taxes Expense | $389,000 |
Management Salaries | $428,000 |
Other Operating Costs | $1,995,000 |
Total Operating Costs | $5,799,000 |
Thyme Hotel has 220 rooms with an average occupancy rate of 80%. 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 110 300-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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started