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You are planning to open a new hotel. You expect to sell 21,000 rooms, give or take 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 take 8%. The expected variable cost per room is $10 and the expected total fixed cost is $480,000. Cost estimates can change within a plus or minus 5% range. The depreciation expense is $140,000. You expect to sell your rooms at an average rate of $100, which can change within a plus or minus 10%. What is your NET INCOME under the WORST scenario?
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