The Meyer Model (MM), a rooms-only fifty-room lodging operation has a cost structure as follows: Monthly...
The Meyer Model (MM), a rooms-only fifty-room lodging operation has a cost structure as follows:
Monthly fixed Cost $20,000
Variable Costs/room sold = $20
ADR = $60
Average tax rate equal 20%
Required
1) What is MM's CMR
2) What is MM's breakeven point? (in rooms sold)
3) If MM is to make $10,000 of monthly profit (after tax) what must its hotel revneue be?
4) if MM makes 10,000 of monthly profit during June what day of the month does it break even? Assume the number of rooms sold are the same each day
5) If MM's variable cost increased by 50%, how much must its ADR increase all other things beingn the same?
Homework Answers
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The Meyer Model (MM), a rooms-only fifty-room lodging operation
has a cost structure as follows:
Monthly...
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Problem 12 The Myer Motel (MM), a rooms-only fifty-room lodging operation, has a cost structure as follows: Monthly fixed costs = $20,000 Variable costs/room sold = $20 ADR = $60 Average Tax Rate = 20 percent Required: 1 What is MM's CMR? 2. What is MM's breakeven point? (in rooms sold) 3. If MM is to make $10,000 of monthly profit (after tax), what must its total revenue be? 4. If the MM makes $10,000 of monthly profit during June,...
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5.4. General Hospital, a not-for-profit acute care facility, has the following cost structure for its inpatient services Fixed Costs Variable costs per inpatient day Charge (revenue) per inpatient day $10,000,000 200 1,000 The hospital expects to have a patient load of 15,000 inpatient days next year. a. Construct the hospitals base case projected P&L statement b. What is the hospitals breakeven point? c. What volume is required to provide a profit of $1,000,000? A profit of $500,000? d....
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