Question
You are planning to open a new hotel. You expect to sell 21,000 rooms, give or receive 8%. The expected variable cost per room is
You are planning to open a new hotel. You expect to sell 21,000 rooms, give or receive 8%. The expected variable cost per room is $10 and the total expected fixed cost is $480,000. Cost estimates can range from plus or minus 5%. The depreciation expense is $140,000. You expect to sell your rooms at an average rate of $100, which can vary between plus or minus 10%. What is your net income in the worst case scenario?
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Accounting for Decision Making and Control
Authors: Jerold Zimmerman
8th edition
78025745, 978-0078025747
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