ACC 5850 Skyview Manor Case 1. On average‚ how many rooms must be rented each night in season for the hotel to break even? Variable Costs: Cleaning Supplies $1‚920 Linen Service $13‚920 ½ Misc Expenses $3‚657 $19‚497 (Total Variable Cost) Variable Cost per Occupied Room Night: = =$2.54. Contribution Margin: Average Revenue = = $20.94 Contribution Margin = Revenue – Variable Cost = $20.94 – $2.54 = 18.40. Fixed Costs: = Total Costs – Variable Costs
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Question 1. Break-even point (per unit) = Total Fixed Costs / Average Revenue – Variable Costs per Unit Total Fixed Costs = Total Costs – Variable Costs Total Costs = $138‚410 (Total Expenses‚ Exhibit 1) In this case‚ Variable Costs would include Cleaning Supplies‚ Linen Service‚ and one half of Miscellaneous expenses; therefore‚ Total Variable Costs = 1‚920 + 13‚920 + 3‚657 = $19‚497 Thus‚ Total Fixed Costs = $138‚410 - $19‚497 = $118‚913 Average number of rooms occupied per season = 120
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The principal question of the case study is whether Skyview Manor should stay open during the off-season or not. Currently‚ Skyview Manor is operating during the skiing season which opens a total of 120 hotel operating days but if they remain open the hotel will operate 365 days a year. The manager of the hotel‚ Mr. Kacheck‚ is worried about off-season losses. Mr. Kacheck proposed following ideas in order to increase the occupancy and decrease the losses. * Stay open in the off-season and
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SKYVIEW MANOR OVERVIEW Hotel Skyview Manor hanya buka pada musim ski. Hotel buka pada tanggal 2 Desember dan tutup pada akhir Maret. Pegunungan ski beroperasi hanya selama 120 hari per tahun. Setiap 50 kamar di sebelah timur disewakan sebesar $15 untuk satu orang atau $20 untuk dua orang. Untuk 30 kamar di sebelah barat disewakan sebesar $20 untuk satu orang dan $25 untuk dua orang. Rata-rata tingkat penyewa kamar hotel selama musim ski adalah sebesar 80% (dengan kondisi hotel penuh disaat akhir
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Skyview Manor This case study is set in 1962 in rural Vermont. The Skyview Manor is an old‚ but well-maintained property that has changed ownership several times over the years. It has no restaurant or bar. It is positioned as a mid-price‚ good quality “destination” resort hotel. The Skyview Manor is open only during the skiing season. It opens on December 2 and closes the last day of March. The ski mountain that it serves operates on a permit from the state which allows only 120
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SkyView Manor Case Question 1 variable Cost Linen service $13‚920.00 Supplies $1‚920.00 1/2 Misc Exp $3‚657.00 Total $19‚497.00 Revenue $160‚800.00 CM Ratio = 1- (19497/160800) 0.87875 Average room 160800/7680 rooms $20.94 contribution margin per room $18.40 Fixed Cost Depreciation 30000 Property tax 4000 Insurance 3000 Mortgage 21716 Salaries $27‚480.00 payroll Tax $5‚496.00 Repairs $17‚204.00 Utilities $6‚360.00 1/2 misc $3‚657.00 Total 118913 Break even 6463 rooms / 120
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the year‚ per Exhibit 1? 3. What is the proposed incremental contribution margin per occupied room/day during the off-season? Assuming 40% occupancy that can be expected due to the advertising budget 4. For each alternative in the case‚ list the annual expenses that are incremental to that decision alternative but are not related to the room/days occupied? A. Open West wing during offseason Annual incremental expenses that are not related to rooms/days occupied 1.
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Competitive position In the next three years‚ Crestwood Manor board and care homes would like to improve the profitability of the board and care homes to 85%. This will help to recover the cost that it took to open and start the board and care program for Crestwood Manor. • Customer Value Perspective‚ includes strategic objectives in areas such as: a. Customer retention or turnover b. Customer satisfaction c. Customer value Crestwood Manor would like an overall satisfaction from patients to be
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Cato Manor Cato Manor started off as land given to George Christopher Cato (first mayor of Durban) as compensation for his land that was taken up by the colonial government near the harbour. After Cato’s death his estate was divided and subdivided and sold accordingly. Cato Manor’s very luring not only due to its position and its accessibility to transport - (8km away from the Durban CBD)‚ Cato Manor was peaceful than the other areas around at the time‚ there were no issues of “The land has not
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The main objective in the Carson Manor study is to reduce cost on a per-bed basis to be in-line or near the state average. PSD’s role to assist Carson Manor in achieving cost reduction is by recommending a consultant firm that will provide Carson Manor the specific areas for improvement and methods to implement the changes. In order to provide the recommendation for the consultant firm that is best-fit for this situation‚ first they will create an accurate request for proposal that details out
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