This is a quiz review for Monday having a real quiz on Monday and I need the answer to study.

Hospitality Managerial Accounting: HOS 372 Quiz #4:5 points - Summer 2O15 Name: Section: 1. The Long-Term Pricing Strategy should be designed to cover all Fixed Costs and Variable Costs but does not need to cover the Desired Net Income. (True/False) 2. When establishing a Pricing Strategy you should consider all of these factors: Costs, Competition, Customers, Ownership Return, Growth, Business Stability (True/False) 3. Tactical Pricing considers only long-term issues while Strategic Pricing is a response to shortterm factors such as a temporary price reduction by a competitor. (True/False) / (L + Variable Cost o/o) 5. Desired Pre-Tax Income = ROI o/o Goal x Investment / (1 - Tax Rate o/o) 4. Break-Even Revenue = Known Costs 6. What is a reasonable Return on Investment o/o (True/False) (True/False) Goal for most owners? 7. The owner of your business wants a 30o/o ROE on his $1 million investment. The tax rate is 2Oo/o. What Pre-Tax fncome do you need (in dollars)? B. Average Check = Revenue / xb. (a. 9. In Menu Engineering the most popular and highest contribution items are called while the least popular, lowest contribution items are called 10. Average Room Rate = Revenue 11. ADR * o/o / xb. (a. Double Roomsx Spread is used forcomputing the Single Room Rate. 12. Rack Rate x Number of Rooms is the Potential Room Revenue per Day (True/False) (True/False) 13. Yield Pricing is the theory that a hotel need only cover its Fixed Costs when setting a discounted room price. (True/False) L4. If you lower your price by a small amount and the revenue increases by a large amount then you have an elastic demand. (True/False) 15. A hotel has Variable Costs of $15, The normal Room Rate is $2OO. Should it always accept an offer of $2O for a room when it has many vacancies? (Yes/No) Why/Why not? 16. The owner of a restaurant has invested $SOOTOOO in the business. He expects a 2oolo ROE. His tax rate is 25o/o. The restaurant has fixed costs of $3OOTOOO per year and variable costs of 6(J0/o. Calculate the required sales revenue for the restaurant: 17. A new 2O0 room hotel cost $3O million to what should the ADR of the hotel be? build. Using the dollar-per-thousand rule of thumb, Single Rate if the ADR of a hotel is $3OO, 4Oo/o of the rooms are doubles and the spread is $5O: 18. Calculate the 19. What is the $7OO,OOO? required revenue if a hotel has 3oolo variable costs and known costs of 20. Which business typically has a higher contribution margin, hotels or restaurants