User Account

All Pages

What is the contribution margin from this special offer

Assignment Help Accounting Basics
Reference no: EM133061088

Question - Grand Garden is a hotel with 160 suites. Its regular suite price is $210 per night per suite. The hotel's total cost per night is $150 per suite and consists of the following.

Variable cost $110

Fixed cost 40

Total cost per night per suite $150

The hotel manager receives an offer to hold the local Bikers' Club meeting at the hotel in March, which is the hotel's slow season with a low occupancy rate per night. The Bikers' Club would reserve 140 suites for one night if the hotel accepts a price of $118 per night.

Required -

(a) What is the contribution margin from this special offer?

(b) Should the Bikers' Club offer be accepted or rejected?

Reference no: EM133061088

Questions Cloud

What is the firm profit margin : Question - A firm has a ROE of 14 percent and a debt-to-equity ratio of 40 percent. If the total asset turnover is 3.4, what is the firm's profit margin
What are the current earnings per share : Crestwood Ltd., a computer hardware company with sales of $28 million and a net profit margin of 6.5% is considering an expansion. Management estimates the expa
What is balance for fixed assets on Olivia balance sheet : You have the following information on Olivia's Bridle Shop: total liabilities and equity = $65 million, What is balance for fixed assets on Olivia balance sheet
What are the consolidated sales and cost of goods sold : ABC had established the transfer price based on its normal gross profit rate. What are the consolidated sales and cost of goods sold
What is the contribution margin from this special offer : The Bikers' Club would reserve 140 suites for one night if the hotel accepts a price of $118 per night. What is the contribution margin from this special offer
What will abc dividend payout be : ABC Corp. has a target debt-to-equity structure of 25/75. Management has decided on a capital budget of $1.4 million for next year. Sales are forecasted at $18
Determine the project net present value : IFNA Ltd. is a pulp and paper company located in northern Ontario. IFNA Ltd. has an opportunity to undertake a project, which will increase its output in the pu
What is the swap fixed rate : You enter a 2-year pay-fixed receive-floating interest rate swap with semi-annual payments on a notional principal of $20 million and the current term structure
How much should be allocated to the retail division : The following information for 2016 is available: Actual R&D costs total 730,000. How much should be allocated to the retail division

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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