Analysis of this offer for the hotel manager

Assignment Help Accounting Basics

Reference no: EM13969235

Grand Garden is a luxury hotel with 155 suites. Its regular suite rate is $210 per night per suite. The hotel's cost per night is $135 per suite and consists of the following.

Variable direct labor and materials cost $29
Fixed cost [($5,970,000/155 suites) ÷ 365 days] $106
Total cost per night per suite $135

The hotel manager received an offer to hold the local Bikers' Club annual meeting at the hotel in March, which is the hotel's low season with an occupancy rate of under 50%. The Bikers' Club would reserve 50 suites for three nights if the hotel could offer a 50% discount, or a rate of $105 per night. The hotel manager is inclined to reject the offer because the cost per suite per night is $135.

Required:

Prepare an analysis of this offer for the hotel manager.

Reference no: EM13969235

Questions Cloud

Describe the steps of an eia process : Describe the steps of an EIA process for the above subject project - who will you consider in public participation and why and what type of base line data will you need for the EIA

How does this ethical issue impact nursing and health care : How does this ethical issue impact nursing and health care? What is the relevance of this ethical issue? Why you think this ethical issue is important to resolve?

Prepare the income statement statement of changes in : Talley Inc. experienced the following events in 2016, in its first year of operation: Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for the 2016 accounting period.

Show that the sherwin-williams product is the best value : Using the concept of life cycle costing, Show that the Sherwin-Williams product is the best value for the final customer Write a one page FORMAL business letter (NOT AN EMAIL - see below) to Mr. Miller with your recommendation and showing your ca..

Analysis of this offer for the hotel manager : Prepare an analysis of this offer for the hotel manager.

Public health preparedness capabilities planning model : Review the Public Health Preparedness Capabilities at http://www.cdc.gov/phpr/capabilities/dslr_capabilities_july.pdf. Pay specific attention to the Public Health Preparedness Capabilities Planning Model

Gearing up to plan the spend for the upcoming season : What metric(s) would you look at to come up with the optimal decision? What optimization model that you have seen or used for a different type of application could apply here? Why do think the problem is similar? State all assumptions.

Informs ethical practices and conduct in accounting : You are to prepare a 5-page report on a philosopher/thinker of your choice and show clearly how his/her body of thought applies to, and informs ethical practices and conduct in accounting and business in general.

A large volume of research related to leadership : A large volume of research related to leadership has been published over the last fifty years. This large volume of research stresses on the importance of leadership within the context of organizational productivity and performance. While leadership ..

User Account

All Pages