Question 1— On average, how many rooms must be rented each night in season for the hotel to breakeven?
Calculating the break-even occupancy level requires splitting the costs in Exhibit 1 into the fixed and variable components:
a) Variable Costs:
Cleaning supplies
$ 1,920
Linen service
$13,920
1/2 Misc. expense
$ 3,657
$19,497
b) Per Occupied Room Night = $19,497 ÷ 7,680 (120 80 80%)
= $2.54
c) Contribution Margin:
Average revenue $160,800 ÷ 7,680 = $20.94
Revenue - Variable Cost = $20.94 -$2.54 = $18.40
d) Fixed Costs:
Total Costs - Variable Costs = Fixed Costs
$138,410 - $19,497 = $118,913
e) Break Even = $118,913 / $18.40 = 6,463 room nights
Per night (÷ 120) = 54 rooms (68% occupancy)
Skyview 1
Skyview 2
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Depreciation of $30,000 with a 15 year life implies buildings & furnishings of
$450,000.
Skyview 8
2. Interest expense of $21,716 for the first year at 5% interest implies an average one year old mortgage balance of about $434,000 [beginning balance (new mortgage) of $440,000 and ending balance of $430,00]. Assuming a normal mortgage limit of
80% of value, the property is worth about $550,000.
3. This would imply about $100,000 for non-depreciable land (550,000-450,000), which seems reasonable.
4. There is probably very little working capital investment here—no receivables, very little inventory, and perhaps some modest accruals for wages, payroll taxes and miscellaneous bills. We would estimate a net of about zero, except for cash.
5. The cash balance would have to be large enough to support the float on day to day operations over the year. Exhibit 1 here is a rough estimate of cash flows over the twelve months. The business would need about $55,000 in cash at the end of a season (April 1) to carry it through until December (including a 10% cushion). From December to March, the business probably needs about $20,000 in cash at any time (roughly, 1 month’s payments plus a 10% cushion). Thus, at
March 31 we would estimate a cash balance of probably $55,000
When first coming to this country as a Hispanic American you may face a lot of difficulties and find more problems than the average white American. Hispanic people go through different adversities and have trouble overcoming them. In The House on Mango Street the main character Esperanza is the one that narrates the story, she explains what it is like to live on Mango Street. She shows the readers that living on Mango Street is perceived as a terrible area, if one were looking from the outside in. But those that live there feel that they live in fair living conditions. The fact is most of the people who live on Mango Street don 't know what it 's like to live outside of mango street. In the story, they show a lifestyle that most Hispanic people deal with especially the ones that come to America and have to figure out how to make ends meet. In The House on Mango Street, the novel has many themes and problems, such as gender inequality, stereotypes, and language barriers. With short stories like "Aria" and "the myth of Latin Woman," a solution is always found. Sometimes there is a simple solution and other times, it is not so easy to find, or there 's just no solution to solving the characters problems and they are still trying to look for results.
When I grow up, I want to be a black gum tree. Black gum trees are known for their internal strength. Instead of dwelling on outward beauty, they spend more time focusing on their inner growth and developing their core. Only after they have achieved this goal can they produce beautiful fruits that draw animals near to them. Any surfaces that the berries touch are stained as to say, “I was here and made a permanent difference.” After they have utilized their outward influences, they use their internal scars and hollow places to protect the animals surrounding around it. If human lives were to reflect the concepts of the black gum tree, governments, individuals, and communities would be radically transformed. While this is a beautiful image,
The company maintains a minimum cash balance of at least $50,000 at the end of each month. All borrowing is done at the beginning of a month; any repayments are made at the end of a month.
a. How much would the payment be if rate of interest is 5% and you only financed the truck for 48 months?
According to the Patton Fuller hospital’s unaudited balance sheet, their total operating expenses equals 462,293, after subtracting the value of depreciation the total equals 426,257. Dividing 426,257 by 365 equals $1,168 which represents the daily operating amount. Next, the total for cash and cash equivalents must be divided by $1,168 which equals 20, or the days of cash on hand. This indicates that the hospital has 20 days of cash on hand in average and need to slow down on expenditures and utilize cash sparingly.
Marbury v. Madison established the power of judicial review in the United Sates Supreme Court. William Marbury appointed a justice of the peace for the District of Columbia in the final hours of the Adams administration. When James Madison, Thomas Jefferson’s secretary of state, refused to deliver Marbury’s commission, Marbury was joined by three other similarly appointees. John Marshall refused to issue the writ. At that time, the Constitution did not give the Supreme Court the power to issue the writs of mandamus.
What shepherds produced supported the manor with its economy. Animals had a big part in the manor, and produced a lot of goods thanks to the shepherds. Pigs were the most numerous of livestock and they could mainly support themselves by foraging in the woods. Cows were kept to breed oxen for the plow team. Sheep and goats were used for milk and cheese and sheep was also used for wool (Gies and J Gies 22). Landowners had trading links with traders abroad, but peasants dealt with travelling merchants. Large numbers of sheep were bred and taken care of to produce a lot of wool and enough wool was made for families and abroad, and families in little cottages turned it from rough wool to cloth (Johnson). A lot of cheese was produced from female
Nassau Bay Villa is an apartment complex located in one of the most desirable locations in Houston, Texas. It is just minutes away from Clear Lake and the Johnson Space Center. Residents will find fine dining, entertainment, and great coffee shops all just a short distance away from the complex. Even more appealing is the fact that the downtown area of Houston is just a half hour away.
The corporate housing market in downtown LA has expanded with the entry of TENTEN Wilshire into the fast growing segment. Corporate housing is a good alternative to hotel accommodation since it less costly and promises greater square footage. Besides offering full customer service, this type of accommodation is highly suitable for clients looking for both long and short-term apartment. On it part, 1010 Wilshire offers several benefits to executives and corporate clients residing in Sunset Hills CA neighborhood and surrounding areas. The benefits include strategic location in down town LA, zero overhead expenses and world class amenities.
West End Community House is a not‐for‐profit, community‐based organisation providing services to residents in the inner southern suburbs of Brisbane. These services currently include Community Development, Tenancy Advice, Advocacy, Community Meeting spaces and local outreach services. We have an open house drop-in space available from 9am to 1pm, Monday to Thursday, where anyone from the community are free to visit and have a chat and a cup of tea or coffee. We also run weekly events and facilitate groups such as song-writing and music workshops, computer literacy programs, play groups, art groups and a free community breakfast. We have a collection of clothes, toiletries, go-cards and food items that have been donated that we then provide
This is a simple calculation to figure a good day’s sales when it is running at full capacity:
I am assuming the company will have a minimum balance of $35.00 with a new loan of $140.
2. Yes. Slopes has a budgeted cash balance of $69,650 on 10/1/2012 and so it will be in a
amount of cash they should hold in their reserve in order to be able to cover the potential loss.
The upper limit and the lower limit. The buying and selling of marketable securities will be done to keep the balance in range. A maximum amount may also be specified to reflect the trade-off between the transaction cost of investing in liquid assets and cost of lost interest if the cash is not invested. The lower limit is set by the firm based on the desired minimum safety stock of cash in hand. The firm must be able to determine the interest rate, for marketable securities (i), the fixed transaction cost for trading in securities (c), the standard definition if its daily cash