Rest Inn provides four-star accommodations for the vacation traveler. It is located just off a major interstate freeway. There are three other competing motels at the same exit. Hotel management is preparing its budget for the busiest three-month period of the year. June through Augus To differentiate themselves from the competition, Rest Inn provides a complimentary spa package for each guest stay that includes specialty shampoo, conditioner, soap, lotion, toothpaste, lavender essential oil, slippers, earplugs, and a sleep mask. Rest Inn purchases the spa package fr a local vendor that puts the Rest Inn private label on the products. The hotel follows a policy of purchasing enough spa packages to ensure that 4m of next month's bookings are in the current month's ending inventory. Rest Inn's sales budget for guest stays for the next quarter is as follows: June 2.450 guest stays July 2,650 guest stays August 2,250 guest stays How many spa packages should Rest Inn budget for purchase in July? sna parkages

Rest Inn provides four-star accommodations for the vacation traveler. It is located just off a major interstate freeway. There are three other competing motels at the same exit. Hotel management is preparing its budget for the busiest three-month period of the year. June through Augus To differentiate themselves from the competition, Rest Inn provides a complimentary spa package for each guest stay that includes specialty shampoo, conditioner, soap, lotion, toothpaste, lavender essential oil, slippers, earplugs, and a sleep mask. Rest Inn purchases the spa package fr a local vendor that puts the Rest Inn private label on the products. The hotel follows a policy of purchasing enough spa packages to ensure that 4m of next month's bookings are in the current month's ending inventory. Rest Inn's sales budget for guest stays for the next quarter is as follows: June 2.450 guest stays July 2,650 guest stays August 2,250 guest stays How many spa packages should Rest Inn budget for purchase in July? sna parkages

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter11: Linear Optimization Models

Section: Chapter Questions

Problem 5P: Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver,...

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Not graded.... Purchases Budget Rest Inn provides four-star accommodations for the vacation traveler. It is located just off a major interstate freeway. There are three other competing motels at the same exit. Hotel management is preparing its budget for the busiest three-month period of the year, June through August. To differentiate themselves from the competition, Rest Inn provides a complimentary spa package for each guest stay that includes specialty shampoo, conditioner, soap, lotion, toothpaste, lavender essential oil, slippers, earplugs, and a sleep mask. Rest Inn purchases the spa package from a local vendor that puts the Rest Inn private label on the products. The hotel follows a policy of purchasing enough spa packages to ensure that 40% of next month’s bookings are in the current month’s ending inventory. Rest Inn’s sales budget for guest stays for the next quarter is as follows: June 2,100 guest stays July 2,300 guest stays August 1,900 guest stays How…
Cityscape Hotels has 200 rooms available in a major metropolitan city. The hotel is able to attract business customers during the weekdays and leisure customers during the weekend. However, the leisure customers on weekends occupy fewer rooms than do business customers on weekdays. Thus, Cityscape plans to provide special weekend pricing to attract additional leisure customers. A hotel room is priced at $180 per room night. The cost of a hotel room night includes the following: Cost Per Room Night(at normal occupancy) Housekeeping service $ 23 Utilities 7 Amenities 3 Hotel depreciation 55 Hotel staff (excluding housekeeping) 42 Total $130 a. What is the contribution margin for a room night if only the hotel depreciation and hotel staff are assumed fixed for all occupancy levels?$ b. What should be considered in setting a discount price for the weekends? The discount price should be set than the variable costs per room night so that the…
Analyze Cityscape Hotels Cityscape Hotels has 200 rooms available in a major metropolitan city. The hotel is able to attract business customers during the weekdays and leisure customers during the weekend. However, the leisure customers on weekends occupy fewer rooms than do business customers on weekdays. Thus, Cityscape plans to provide special weekend pricing to attract additional leisure customers. A hotel room is priced at $180 per room night. The cost of a hotel room night includes the following: Line Item Description Cost Per Room Night(at normal occupancy) Housekeeping service $23 Utilities 7 Amenities 3 Hotel depreciation 55 Hotel staff (excluding housekeeping) 42 Total $130 The special weekend price is proposed for $120 per room night. At this price, it is anticipated that average occupancy for the weekend (Friday, Saturday, and Sunday) will increase from 30% to 50% of available rooms. Question Content Area a. What is the contribution margin for a…
Analyze Cityscape Hotels Cityscape Hotels has 200 rooms available in a major metropolitan city. The hotel is able to attract business customers during the weekdays and leisure customers during the weekend. However, the leisure customers on weekends occupy fewer rooms than do business customers on weekdays. Thus, Cityscape plans to provide special weekend pricing to attract additional leisure customers. A hotel room is priced at $180 per room night. The cost of a hotel room night includes the following: Cost Per Room Night(at normal occupancy) Housekeeping service $23 Utilities 7 Amenities 3 Hotel depreciation 55 Hotel staff (excluding housekeeping) 42 Total $130 The special weekend price is proposed for $120 per room night. At this price, it is anticipated that average occupancy for the weekend (Friday, Saturday, and Sunday) will increase from 30% to 50% of available rooms.
Analyze Cityscape Hotels Cityscape Hotels has 200 rooms available in a major metropolitan city. The hotel is able to attract business customers during the weekdays and leisure customers during the weekend. However, the leisure customers on weekends occupy fewer rooms than do business customers on weekdays. Thus, Cityscape plans to provide special weekend pricing to attract additional leisure customers. A hotel room is priced at $180 per room night. The cost of a hotel room night includes the following: Cost Per Room Night(at normal occupancy) Housekeeping service $23 Utilities 7 Amenities 3 Hotel depreciation 55 Hotel staff (excluding housekeeping) 42 Total $130 The special weekend price is proposed for $120 per room night. At this price, it is anticipated that average occupancy for the weekend (Friday, Saturday, and Sunday) will increase from 30% to 50% of available rooms. a. What is the contribution margin for a…
Donaldson Bed and Breakfast has six available rooms to rent to tourists visiting Niagara Falls. Guests enjoy a comfortably appointed room with an attached bathroom and the owners provide a hearty breakfast each morning. The owners have calculated that their typical occupancy rate is 80% per month. The cost to rent each room is $65 per occupied room per day assuming a 30-day month. Some of this cost is fixed and some variable. During the month of June, the occupancy rate went down to 60% and the total cost to operate that month was $7, 650. Required: 1. Using the high-low method, estimate the variable and fixed cost elements of the bed and breakfast's operation in a typical month. Note: Do not round your intermediate calculations. Round the "Variable cost per room" to 2 decimal places. Average # room nights rented per month Total Monthly Cost High level of activity Low level of activity Change Variable cost per room Fixed cost per year 2. Express the variable and fixed costs in the form…
Sharon’s Cutting Station offers a new concept in haircuts; low cost and very quick. Set in a local mall, Sharon’s offers 15-minute haircuts for harried shoppers who do not have time for lengthy appointments. To ensure that the clients are in and out quickly, she schedules her 5 employees based on expected client traffic. Each of the employees is paid $1220 per month, with part of their pay coming from client tips. Sharon pays rent and overhead costs of $2400 per month on the facility. Because of the quick nature of the service, Sharon doesn’t have time to clean combs in between clients, so she uses a new comb for each customer, at a cost of $0.50 each. She also provides shampoo and conditioner for each client at a cost of $1.05 per client. The average price for a haircut is $13. Sharon pays herself $5600 per month. What is Sharon’s contribution margin per haircut? $11.45 $11.95 $12.50 $11.15
Sharon's Cutting Station offers a new concept in haircuts; low cost and very quick. Set in a local mall, Sharon's offers 15-minute haircuts for harried shoppers who do not have time for lengthy appointments. To ensure that the clients are in and out quickly, she schedules her 5 employees based on expected client traffic. Each of the employees is paid $1220 per month, with part of their pay coming from client tips. Sharon pays rent and overhead costs of $2400 per month on the facility. Because of the quick nature of the service, Sharon doesn't have time to clean combs in between clients, so she uses a new comb for each customer, at a cost of $0.60 each. She also provides shampoo and conditioner for each client at a cost of $1.05 per client. The average price for a haircut is $15. Sharon pays herself $5600 per month. What is Sharon's contribution margin ratio? 89.0% 85.8% O 12.0% O 11.0%
Laura's Cutting Station offers a new concept in haircuts; low cost and very quick. Set in a local mall, Laura's offers 15-minute haircuts for harried shoppers who do not have time for lengthy appointments. To ensure that the clients are in and out quickly, she schedules her 5 employees based on expected client traffic. Each of the employees is paid $1270 per month, with part of their pay coming from client tips. Laura pays rent and overhead costs of $2200 per month on the facility. Because of the quick nature of the service, Laura doesn't have time to clean combs in between clients, so she uses a new comb for each customer, at a cost of $0.70 each. She also provides shampoo and conditioner for each client at a cost of $1.10 per client. The average price for a haircut is $14. Laura pays herself $5300 per month. What is Laura's contribution margin per haircut? O $13.30 O $12.20 O $12.90 O $11.90
Westover Travel offers travel packages using both air and ocean travel. Westover offers two packages, Tourist and Premier, that differ in the accommodations, class of travel, and so on. Westover has a call center, which handles customer queries and complaints. The call center tracks the number of calls and the number of call - minutes for customers by the package they have purchased. Expected call center data for next month follow. Call center volume: Tourist Premier Number of calls 26,000 15,000 Number of call minutes 120,000 186, 000 Call center costs: Total Call - related $ 219, 350 Call minute - related 119,340 Total call center costs $ 338,690 The call center at Westover uses a two-stage cost allocation system: It uses the number of calls to allocate call - related costs and the number of call minutes to allocate call minute - related costs. Required: Compute the call - related overhead rate for next month. Note: Round your answer to 2 decimal places. Compute the call minute -…
Sanjana's Sweet Shoppe operates on the boardwalk of a New England coastal town. The store only opens for the summer seaso the business is heavily dependent on the weather and the economy in addition to new competition. Sanjana Sweet, the owner, prepares a budget each year after reading long-term weather forecasts and estimates of summer tourism. The budget is a first ste planning whether she will need any loans and whether she needs to consider adjustments to store staffing. Based on expertise ar experience, she develops the following. Scenario Good Fair Poor Gross Margin per Customer (Price Cost of Poor Fair Good Poor Fair Good Poor Fair Good Sanjana assumes, for simplicity, that the gross margin and the estimated number of customers are independent. Thus, she has nine possible scenarios. In addition to the cost of the products sold, Sanjana estimates staffing costs to be $31,000 plus $2 for every customer in excess of 26,000. The marketing and administrative costs are estimated to be…
1) Tom Rodgers is the director of purchasing of Dart Industries. Tom is responsible for booking 1,000 rooms per month in the city that houses his company’s corporate office. Tom approaches you, the DOSM/RM of the local Hawthorne Suites hotel, with a proposition. Instead of paying $159.99 per night; your hotel’s normal room rate for corporate travelers, he proposes the following rate structure: Per month Room Rate 1 to 100 $159.99 101 to 400 $139.99 401 to 600 $119.99 601 to 1,000 $109.99 A. Calculate the room revenue your hotel would receive if Tom booked: Room Purchased ADR Total Revenue 250 rooms Q1 Q2 350 rooms Q3 Q4 401 rooms Q5 Q6 B. Assume the variable cost associated with selling each room is $65.00. Calculate the “after variable costs” revenue your hotel would receive if Tom booked: Rooms Purchased Variable Cost @ $65 per room After variable cost Revenue 250 rooms Q7 Q8 350 rooms Q9 Q10 401 rooms Q11 Q12 2) You will find examples of…