Develop bed-and-breakfast operation-prospective owners

Assignment Help Operation Management

Reference no: EM13902360

As part of their application for a loan to buy Lakeside Farm, a property they hope to develop as a bed-and-breakfast operation, the prospective owners have projected: Monthly fixed cost (loan payment, taxes, insurance, maintenance) $6000 Variable cost per occupied room per night $ 22 Revenue per occupied room per night $ 78 a. Write the expression (equation) for total cost per month. Assume 30 days per month. b. Write the expression for total revenue per month. Assume 30 days per month. c. If there are 12 guest rooms available, can they break even (ie, will profit>=0)? What is the profit at full occupancy? d. What percentage of those 12 rooms would need to be occupied, on average, to break even?

Reference no: EM13902360

Questions Cloud

Custom-craft-mass production and sorting-statistical quality : There are generally five quality paradigms recognizable in today’s organizations, namely: custom-craft, mass production and sorting, statistical quality control, total quality management, and techno-craft. Compare the five paradigms in each of the fo..

Who gets the loan : Who gets the loan? You work for the small business loan department for your state. You are asked to review two loan applications for new restaurants. Applicant A proposes to open a restaurant in a suburb of your state’s largest city.

Compute the value of priority contractors on january : Compute the value of Priority Contractors on January 1, Year +1, using the residual income valuation model. The firm expects net income to grow 5 percent annually after Year +5.

Evaluate the ethics of toyota in holding off on the recalls : If the floor mats were getting in the way of the brake pedal or pressing on the accelerator, would toyota have liability? Evaluate the ethics of Toyota in holding off on the recalls. What if drivers made a mistake, or were just confused, and stepped ..

Develop bed-and-breakfast operation-prospective owners : As part of their application for a loan to buy Lakeside Farm, a property they hope to develop as a bed-and-breakfast operation, the prospective owners have projected: Write the expression (equation) for total cost per month. Assume 30 days per month...

What advice would you give kelsey regarding her ownership : Using the residual income valuation model, compute the value of Morrissey Tool Company as of January 1, Year +1. What advice would you give Kelsey regarding her ownership of the firm?

Explain the difference between a shift in the supply curve : Explain the difference between a shift in the supply curve and a movement along the supply curve.

Using capm compute required rate of return on equity capital : Using the CAPM, compute the required rate of return on equity capital for each firm. Project required income for Year +1 for each firm. Project residual income for Year +1 for each firm.

What is the elasticity of demand : If a 3-percent increase in the price of corn flakes causes a 6-percent decline in the quantity demanded, what is the elasticity of demand?

User Account

All Pages