Gross revenue and gross operating profit

Assignment Help Financial Accounting

Reference no: EM13866636

What is the management fee 1) on a per available room basis and 2) as a percentage of total revenue for a 255-room hotel located in California that had an occupancy level of 62%, ADR of $84.53, a room revenue to total revenue % of 56.4%, and a gross operating profit % of 24.8%? The management fee agreement stipulated that the company would receive 3% of gross revenue, and 10% of gross operating profit?

Reference no: EM13866636

Questions Cloud

Identify events that result in revenue-expense recognation : Valmont Inc. experienced the following events in 2014, its first year of operation: Received $50,000 cash from the issue of common stock. Performed services on account fot $67,000. Identify the events that result in revenue or expense recognition and..

What is the cost of goods sold of repay company for period : RePay Company began the accounting period with USD 80,000 of merchandise, and net cost of purchases was USD 260,000. A physical inventory showed USD 92,000 of merchandise unsold at the end of the period. What is the cost of goods sold of RePay Compan..

Courts of law offer three remedies : Traditionally, courts of law offer three remedies, called remedies at law. Highlight these three traditional remedies:

Pacific should report a gain on sale of this investment : Pacific Company bought 35% of the outstanding common stock of Atlantic Inc. on January 1, 2014, for $400,000. Atlantic reported net income of $200,000 for 2014 and declared and paid no dividends for the year. This investment was sold for $500,000 on ..

Gross revenue and gross operating profit : What is the management fee 1) on a per available room basis and 2) as a percentage of total revenue for a 255-room hotel located in California that had an occupancy level of 62%, ADR of $84.53, a room revenue to total revenue % of 56.4%, and a gross ..

Process inventory control-finished goods control : Grand Devices Corporation assembles handheld computers that have scaled-down capabilities of laptop computers. Each handheld computer takes 6 hours to assemble. Post the entries in requirement 1 to T-accounts for applicable Materials and In- Process ..

Hotel property recorded : A 335 room hotel property recorded in 2013 a 66.6% occupancy and an ADR of $117.98. What is the property's franchise fee 1) on a per available room basis and 2) as a percentage of rooms revenue if the agreement required the hotel to pay a reservation..

Calculate margin and net income and return on equity : For the year ended December 31, 2013, Ebanks, Inc., earned an ROI of 12%. Sales for the year were $150 million, and average asset turnover was 2.5. Average stockholders’ equity was $50 million. Calculate E banks, Inc.’s return on equity. Calculate E ..

Calculate the balance in the common stock account : Total equity at December 31, 2008 is equal to 80% of total liabilities at December 31, 2008. Calculate the balance in the common stock account at December 31, 2008.

User Account

All Pages