What is the projected after-tax average daily room rate

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Question 1: Imagine that BellDunn Resort Hotel has 40 rooms available to sell on daily basis with occu-pancy of 45.00%. The management has projected the hotel's total revenues as room revenues of $510,500, food and beverage (F&B) revenues of $62,200, catering revenues of $20,000, and other revenues of $40,000. It is also calculated that 32.00% of the total revenues is the total expenses for BellDunn. If the income tax is 40.00%, what is the projected after-tax average daily room rate (ADR) for the next year based on the net income for BellDunn (assume that there are 365 days in a year)?

Reference no: EM132627231

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