STHM 3329 Study Guide - Final Guide: Average Variable Cost, Fixed Cost, Variable Cost
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1) please include the whole process of your calculations and dollar unit for revenues and costs. 2) all calculates need to be rounded up to two decimal places, except for sales volume: a 200 room hotel has an annual fixed cost of ,050,000 and a net income goal of 12% return on investment ,000,000. With an average room rate of and average variable cost of , determine the annual number of room sales and revenue required (tax rate is 20%). =32,925,000: a motel has 70 rooms it usually rents out, in the following proportions: Variable cost per unit sold will increase to. . 00, and ,000 per year will be spent on advertising (new fc item). Hints: assume tax rate=0, 1 year = 365 days, vc%=vcu/room rate, occupancy rate= # of room sold / # of room available, # of room available= # of room available per day * days of operation.