A hotel has 300 rooms and an annual fixed cost of BRL 1,500,000.00 and variable costs of BRL 90.00 per occupied room, that is, per day-room. The hotel is open 365 days a year and is subject to a 34% income tax. For it to be at the economic break-even point, what should be the daily price P for an occupancy rate of 40% for the hotel to give an annual return of 10% on the investment made by the partners in its construction. The amount invested was BRL 10,000,000.00. a) $182.17 b) $165.69 c) $158.84 d) $134.41
A hotel has 300 rooms and an annual fixed cost of BRL 1,500,000.00 and variable costs of BRL 90.00 per occupied room, that is, per day-room. The hotel is open 365 days a year and is subject to a 34% income tax. For it to be at the economic break-even point, what should be the daily price P for an occupancy rate of 40% for the hotel to give an annual return of 10% on the investment made by the partners in its construction. The amount invested was BRL 10,000,000.00. a) $182.17 b) $165.69 c) $158.84 d) $134.41
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A hotel has 300 rooms and an annual fixed cost of BRL 1,500,000.00 and variable costs of BRL 90.00 per occupied room, that is, per day-room. The hotel is open 365 days a year and is subject to a 34% income tax. For it to be at the economic break-even point, what should be the daily price P for an occupancy rate of 40% for the hotel to give an annual return of 10% on the investment made by the partners in its construction. The amount invested was BRL 10,000,000.00.
a) $182.17
b) $165.69
c) $158.84
d) $134.41
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