Use the following information to calculate the change in value that would result if the benchmark were achieved for this company for a full year: Benchmark Cost per Occupied Room $ 3.85 $ 4.00 Current Cost Per Occupied Room Total Rooms (per day) 1,500 Occupancy percentage 78 % Capitalization Rate 6 %

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter8: Cost Analysis
Section: Chapter Questions
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Use the following information to calculate the change in value that would result if the benchmark were
achieved for this company for a full year:
Benchmark Cost per Occupied Room $ 3.85
Current Cost Per Occupied Room
Total Rooms (per day)
$ 4.00
1,500
Occupancy percentage
Capitalization Rate
78 %
6 %
Show your work.
Transcribed Image Text:Use the following information to calculate the change in value that would result if the benchmark were achieved for this company for a full year: Benchmark Cost per Occupied Room $ 3.85 Current Cost Per Occupied Room Total Rooms (per day) $ 4.00 1,500 Occupancy percentage Capitalization Rate 78 % 6 % Show your work.
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