Pros: Helps hotel to achieve 100% occupancy, Maximize expected venue, Long term revenue and profit increase, low risk method to increase profitability and Compensation are cheaper than leaving a room empty
Cons: loss of hotel reputation, alternative arrangement for guests might be more expensive, may revive negative review online ,
The purposeful and deliberate act of overbooking runs counter to any acceptable standard of ethical business practice. In addition to the practice being ripe with serious legal, contractual and consumer protection violations, overbooking forces hospitality personnel into making conscious immoral and unethical choices.
Answer: E) May depend on some future event occurring. It is not a characteristic of known liabilities.
Explanation: Unknown or uncertain liabilities are those whose existence depends on the occurrence of a future event.
Known liabilities <u>are definitely determinable and measurable.</u>
<u />
Answer and Explanation:
The computation of the contribution margin per pound for each of the three products is shown below:
As we know that
Selling price per pound - Variable cost per pound = Contribution margin
For Product K1
= $155.8 - $91
= $64.8
For Product S5
= $108.92 - $90
= $18.92
For Product G9
=$205.55 - $136
= $69.55
Now the contribution margin per pound is
For Product K1 = Contribution margin ÷ Pound
= 64.8 ÷ 4.2
= 15.43 per pound
For Product S5 = Contribution margin ÷ Pound
= 18.92 ÷ 4.1
= 4.61 per pound
For Product G9 = Contribution margin ÷ Pound
= 69.55 ÷ 5.3
= 13.22 per pound
Answer:
0.41
Explanation:
The computation of the weight of security Y in the minimum variance portfolio is shown below:-
Weight of security X = Standard deviation of security Y ÷ (Sum of the standard deviation of securities)
= 39% ÷ (39% + 27%)
= 39% ÷ 66%
= 59.01%
Weight of security Y = 1 - Weight of security X
= 1 - 59.01%
= 0.41
