What is the management fee as a percentage of total revenue for a 275-room hotel located in the northwest, if the property recorded an occupancy percentage of 67.3% and an average room rate of $110.86? the hotel had a room revenue to total revenue ratio of 65.1% and a GOP of 29.3% of total revenue.
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- What is the management fee as a percentage of total revenue for a 275-room hotel located in the northwest, if the property recorded an occupancy percentage of 67.3% and an average room rate of $110.86? the hotel had a room revenue to total revenue ratio of 65.1% and a GOP of 29.3% of total revenue. The management fee contract stipulated that the hotel management company would receive 1% of total revenue and 9% of GOP.
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- A company rents a building with a total of 80,000 square feet, which are evenly divided between two floors. The total monthly rent for the building is $75,000. The company allocates $50,000 of total rent expense to the first floor and $25,000 of total rent expense to the second floor. How much of the monthly rental expense should be allocated to a department that occupies 16,000 square feet on the first floor?Mortgage Investor Group is opening an office in Portland, Oregon Fixed monthly costs are office rent ($8,900), depreciation on office furniture ($1,800), utilities (2,200), special telephone lines ($1,100), a connection with an online brokerage service ($2,700), and the salary of a financial planner ($4,400). Variable costs include payments to the financial planner (9% of revenue)advertising (11% of revenue), supplies and postage (4% of revenue), and usage fees for the telephone lines and computerized brokerage service (6% of revenue )National Investor Group is opening an office in Portland, Oregon. Fixed monthly costs are office rent ($8,10), utilities ($2,000), special telephone lines ($1,500), a connection with an online brokerage service ($2,500), and the salary of a finanical planner ($5,200). Variable costs include payments to the financial planner (9% of revenue), advertising (11% of revenue), supplies and postage (4% of revenue), and usage fees for the telephone lines and computerized brokerage service (6% of revenue). REQUIREMENTS :Use the contribution margin ratio approach to compute National's breakeven revenue in dollars. If the average trade leads to $1,000 in revenue for National, how manhy trades must be made to break even? :Use the equation approach to compute the dollar revenues needed to earn a monthly target profit of $12,600. :Graph national's CVP relationships. Assume that an average trade leads to $1,000 in revenue for National. Show the breakeven point, the sales revenue line, the fixed cost…
- Jonas Consulting enters into a contract to provide cost management consulting services over a 1-year period for $10,000 per month. At the end of the contract, Jonas will either give the customer a $24,000 refund or be entitled to an additional $24,000, depending on the level of cost savings. The company believes there is an 80% chance that it will be entitled to an additional $24,000 and a 20% chance it will give a refund of $24,000. In addition, Jonas believes it is probable that a significant reversal of any previously recognized revenue will not occur. The contract performance is determined to be satisfied over time. Required: 1. Determine the monthly transaction price that Jonas should use for recording the contract and prepare Jonas’s journal entry at the end of the first month of the contract using the most likely amount approach.For performance evaluation, Victory Inc. considers each of its three vacation resorts separately. Each is considered an Investment Center. “Fun” Resort had Revenue of $1,200,000 and Variable Costs of $310,000 and Fixed Costs of $650,000 so the subunit’s Operating Income was $240,000. “Pamper” Resort had Revenue of $3,185,000 and Variable Costs of $995,000 and Fixed Costs of $1,680,000 so the subunit’s Operating Income was $510,000. “Relax” Resort had Revenue of $1,400,000 and Variable Costs of $375,000 and Fixed Costs of $725,000 so the subunit’s Operating Income was $300,000. REQUIRED: For each subunit, calculate Return on Investment, DuPont components of Return on Investment, and Residual Income. Then provide a final performance ranking of the subunits by first, second, and third place and explain why you ranked them in that way.A 125 room hotel has an annual fixed cost of $1,150,000 and a profit goal of 150,000. With an average room rate of $78 and average variable cost of $34 per room sold, determine the annual number of room sales, occupancy percentage, and revenue required.
- Caramel Spa Company sells prefabricated pools that cost $80,000 to customers for $144,000. The sales price includes an installation fee, which is valued at $20,000. The fair value of the pool is $128,000. The installation is considered a seperate performance obligation and is expected to take 3 months to complete. The transaction price allocated to the pool and the installation isDetermining the Transaction Price for a Revenue Contract A contractor enters into a revenue contract with a customer to build customized equipment for $180,000 with a performance bonus of $99,000 that will be paid based on how quickly the equipment is completed. The amount of the performance bonus decreases by 15% of the original bonus per week for every week beyond the agreed upon completion date. The contractor has had experiences with similar contracts and thus has the data to predict the timing of completion of the contract. Therefore, the contractor concludes that the expected value method is the best predictor of revenue. The contractor estimates that there is a 60% probability that the contract will be completed by the agreed-upon completion date, a 35% probability that it will be completed one week late, and a 5% probability that it will be completed two weeks late. Complete the following table in order to determine the transaction price for revenue recognition for the…A company uses charging rates to allocate service department costs to the using departments. The accountant compiled the following information on one of the service departments: If Department K plans to use 1,350 hours of the service departments service in the coming year, how much of the service departments cost is allocated to Department K? a. 3,375 b. 27,300 c. 26,325 d. 23,950
- The manager of the Danvers-Hilton Resort Hotel stated that the mean guest bill for a weekend is 600 or less. A member of the hotels accounting staff noticed that the total charges for guest bills have been increasing in recent months. The accountant will use a sample of future weekend guest bills to test the managers claim. a. Which form of the hypotheses should be used to test the managers claim? Explain. H0:600H0:600H0:=600Ha:600Ha:600Ha:600 b. What conclusion is appropriate when H0 cannot be rejected? c. What conclusion is appropriate when H0 can be rejected?Able Transport operates a tour bus that they lease with terms that involve a fixed fee each month plus a charge for each mile driven. Able Transport drove the bus 7,000 miles and paid a total of $1,360 in June. In October. Able Transport paid $1,280 for the 5,000 miles driven. If Able Transport uses the high-low method to analyze costs, how much would Able Transport pay in December, if they drove 6,000 miles?Hydro Systems Engineering Associates, Inc., provides consulting services to city water authorities. The consulting firm’s contribution-margin ratio is 15 percent, and its annual fixed expenses are $245,000. The firm’s income-tax rate is 30 percent.a. Calculate the firm’s break-even volume of service revenue.b. How much before-tax income must the firm earn to make an after-tax net income of $138,000?c. What level of revenue for consulting services must the firm generate to earn an after-tax net income of $138,000?d. Suppose the firm’s income-tax rate changes to 20 percent. What will happen to the break-even level of consulting service revenue?