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Your friend, Big Al, provides you with the following information about his property. Altantica Hotel Number of rooms 200 Days open per year 365 Average

Your friend, Big Al, provides you with the following information about his property. Altantica Hotel Number of rooms 200 Days open per year 365 Average number of rooms available per day 95% Average daily rate $90.00 Variable costs as % of sales 40% Annual fixed costs $604,800 Desired after-tax profit $800,000 Tax rate Proposed new assistant manager cost 36% $40,000.00 a. Big Al askes you to calculate the following (Spreadsheet hint: Do not calculate SP Percentage. You must type in 100 for SP Percentage in order for the grid to calculate properly.) SP Per Unit (Room) Percentage VC CM Total fixed costs Desired after-tax profit Tax rate Before-tax profit Rooms available for sale per year b. Calculate the room sold, occupancy percentage, and sales dollars we will need to breakeven Breakeven point in rooms sold Occupancy % Breakeven point in sales dollars

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