Reference no: EM133090393

Questions -

Q1. A hotel pays an income tax rate of 28% on its profits. The hotel seeks an after-tax profit of $40,000 per month. Rounded up to the nearest dollar, what is the amount of before-tax profit the hotel must achieve each month to meet its after-tax profit goal?

Q2. A regional director of marketing allocates her $12,000 per month salary to three properties she supervises. The allocation is based upon each property's room count. Hotel A has 450 rooms. Hotel B has 375 rooms. Hotel C has 550 rooms. How much of the regional marketing director's monthly salary will be charged to Hotel C?

Q3. A hotel has daily fixed room cleaning costs of $4,500. The hotel's variable cost for room cleaning is $22.50 per room. What would be the hotel's total room cleaning costs on a day when 175 rooms are to be cleaned?

Q4. A restaurant averages sales of $120,000 when serving 20,000 guests. The restaurant's variable costs when serving 20,000 guests is $90,000. The contribution margin per guest is $1.50. Fixed monthly costs are $ 50,000. What is this restaurant's monthly breakeven point in sales dollars?