STHM 3329 Study Guide - Final Guide: Income Tax, Fixed Cost

• School: Temple University
• Department: Sport, Tourism and Hospitality Management
• Course: STHM 3329
• Professor: Sheridan

Document Summary

50 standards, each 200 sq. ft. big. 50 suites, each 300 sq. ft. big. Income tax rate is 20%; total fixed costs ,000; vc%= 30% How much should we charge per room type: in times of low demand, the current rooms sold per day: 100 and adr: . If adr is discounted to , 130 rooms are sold. If adr is discounted to , 135 rooms are sold. What are the point elasticities for p = and p = 55: at adr of , hotel 3313 is currently selling 50 rooms. Through a market research, the hotel found out that: Scenario 1) by cutting the adr to , it will sell 60 rooms. Scenario 2) by cutting the adr to , it will sell 65 rooms. What would be your recommendation on the change to hotel 3313"s adr: (pv of multiple cash flows) under 9% interest rate, we want to receive ,000 next year,