User Account

All Pages

What amount of annual sales are required

Assignment Help Accounting Basics
Reference no: EM132229144

Question - The German Inn (a rooms-only property) cost its owners $3,000,000 of which they borrowed $1,500,000. The GM estimates the following costs:

Variable costs per room sold: 20 percent of ADR

Annual fixed costs:

Salaries $200,000

Insurance 20,000

Depreciation 100,000

Interest 150,000

Other 80,000

In addition, the Inn's pretax income will be taxed at an average tax rate of 25 percent.

Required:

1. What is the monthly breakeven level of sales at the German Inn?

2. What amount of annual sales are required if the owners are to earn 20 percent of their investment in the property?

Reference no: EM132229144

Questions Cloud

Recording the journal entry : The note requires principal and interest at 12% to be paid on April 30, 2019. Please help with recording the journal entry
Discuss critically the role of foreign direct investment : Discuss critically the role of Foreign Direct Investment (FDI) in economic development of the Middle East Nations.
Describe the ways in which play is said to promote : Write an essay of 1 page needed APA format: Describe the ways in which play is said to promote childrens development. The response must be typed.
Different quadrants of the ansoff matrix : what are their moves into the different quadrants of the Ansoff matrix. What was the risk when they were considering their strategy?
What amount of annual sales are required : What amount of annual sales are required if the owners are to earn 20 percent of their investment in the property
Discuss way in which your chosen cognitive ability develops : Write one page essay, APA format: Discuss the way in which your chosen cognitive ability develops. The response must be typed.
What gain or loss would be recognized on the called bonds : On September 1, 2012, $3,000,000 of the bonds are called at 102 plus accrued interest. What gain or loss would be recognized on the called bonds on September
Do you believe assessment tools are a hindrance : Do you believe assessment tools are a hindrance (user error, false positives), or do they enhance a clinician's ability to diagnose correctly?
What was the balance in Supplies on January : If Mercury Corporation purchased $780 of supplies during the year, what was the balance in Supplies on January 1, 2017

Reviews

Write a Review

Accounting Basics Questions & Answers

  What price must you expect evco stock to sell

What price must you expect Evco stock to sell for immediately after the firm pays the dividend in one year to justify its current price

  Covariance and correlation help to create diversification

Diversification in an investment portfolio is a significant concept for creating the highest return for the least amount of risk. To create this diversification portfolio managers consider the covariance and correlation of investments. Explain how..

  Prepare regal flair enterprisess responsibility income

regal flair enterprise has two product lines jewelry and womensapparel. cost and revenue data for each product line for

  What is the amount of the income or loss from the acceptance

Rylan Corporation received an offer from a potential new customer. What is the amount of the income or loss from the acceptance of the offer?

  The purchasing department of bradley inc is responsible for

the purchasing department of bradley inc. is responsible for companywide purchasing. its total costs are assigned to

  The auditors of annaly mortgage discovered that alot of

the auditors of annaly mortgage discovered that alot of fictitious employees were on the payroll system and werebeing

  What type of laptop computer to buy for your sales

Estimate the correct value of the firm - what type of laptop computer to buy for your sales people to take with them on their calls

  Audience-focused communication matrix

Use the matrix to complete the information. Write 3-4 sentences for each item. • What are some audience characteristics you need to consider?

  Prepare a performance report for direct labor and power

Prepare a performance report for direct labor, power, and setups using the direct labor-based formulas.

  Describe the changes in cost structure

Describe the changes in cost structure that are likely to have occurred at Cravings for Cakes

  Market demand curve for labor in electronics

State whether each of the following events will result in a movement along the market demand curve for labor in electronics factories in China or whether it will cause the market demand curve for labor to shift. If the demand curve shifts, indicat..

  Prepare a cost of production report for the month of july

Beginning work in process: Cost of Inventory at process, July 1 $5,010, Prepare a cost of production report for the month of July

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd