1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
katrin [286]
3 years ago
6

In early 2008, you purchased and remodeled a 120-room hotel to handle the increased number of conventions coming to town. by mid

-2008, it became apparent that the recession would kill the demand for conventions. now, you forecast that you will only be able to sell 20,000 room-nights that cost on average $50 per room per night to service. you spent $20 million on the hotel in 2009, and your cost of capital is 10%. the current going price to sell the hotel is $15 million. what is your breakeven price?
Business
1 answer:
fomenos3 years ago
3 0

To solve this problem, first let us calculate for the total cost:

Total cost = Capital cost + Cost of capital

Total cost = $ 20 M + 0.10* $ 20 M

Total cost = $ 22 M

The breakeven point would be the price in which the total earnings is equal to the total cost. Therefore:

$ 15M + 20,000 * X = $ 22 M

Where X is the breakeven price in dollars per room per night

Calculating for X:

20,000 * X = $ 7 M

X = $ 350

<span>Therefore the break even price is $ 350 per room per night.</span>

You might be interested in
Debt management ratios measure the extent to which a firm uses financial leverage and the degree of safety afforded to . They in
Ket [755]

Answer:

The 1st ratio examines debt by observing at the company's balance sheet, whereas the other two ratios examine debt by observing at the company's income statement. Thus, debt-to-total-assets ratio processes the %age of assets delivered by debt in order to fund total assets. The computed equation will be: (Total long term debt + Total short term debt) / Total assets). The high debt ratios that overdo the business average might create it expensive for a company to borrow the extra funds without initial raising for more equity. The period’s interest received ratio processes the degree to which the income can fall before the company is incapable to meet its yearly interest expense expenditures. However, the computed equation is EBIT / total interest payable: EBIT is used as the numerator as it is funded with pretax dollars.  The company’s capability to pay will not be affected by the taxes. The EBITDA analysis ratio is EBITDA / total interest: This proportion is more comprehensive than the TIE proportion because it identifies that depreciation and payback are not expenses, so these aggregates are accessible to service debt, and lease expenses and principal refunds are fixed expenses.

8 0
3 years ago
A(n) _____________ questionnaire measures what it was intended to measure in the population being assessed.
irinina [24]
The answer in the space provided is the valid questionnaire. It is because a valid questionnaire is a type of questionnaire in which it measures   a particular quantity, group or a particular thing that is related to their research. This type of questionnaire enables to promote the validity and reliability. It could be seen above that it is considered to be a valid questionnaire as it tries to measure something that is related to their research in which they will measure the population.
8 0
3 years ago
The most affective communicaters speak at the rate of ...... words per minute?
jasenka [17]
A. i am pretty sure it is A.



8 0
2 years ago
Margaery is in search of a new job. She is of the opinion that the first step in making a good match between what she has to off
Basile [38]

Option B  need for altruism

8 0
3 years ago
"How can anyone seriously believe in evolution? I certainly don’t. How can you take seriously a theory that claims that humans a
Ipatiy [6.2K]

Answer:

The statement represents the Straw Man fallacy.

Explanation:

A Straw Man fallacy is a version of an argument that is misrepresented, simplified so that it will be easier to defeat. It replaces or represents whatever actual argument is being made. The Straw Man fallacy in some cases is not provided intentionally. They could also be the result of talking about something with little to no previous knowledge of it.

Thus, as the evolutionary theory does not only proposes that humans come from monkeys with less hair and bigger brains, <em>the statement is oversimplifying the different researches on that topic</em> falling into a Straw Man fallacy.

4 0
3 years ago
Other questions:
  • How would the economy of Canada be likely characterized?
    10·2 answers
  • Logistics Trucking Company operates a fleet of fuel trucks. When one of the trucks is positioned to receive a load of biofuel, i
    14·1 answer
  • Frank missed an important deadline at work. His boss, George, thinks to himself, "Frank missed that deadline because he is lazy;
    14·1 answer
  • A Roth IRA and a Tax Deferred investment plan are just two of many ways you can invest into for your retirement. If you wanted t
    14·2 answers
  • FAW Group is an automobile manufacturer known for producing efficient, durable, and low-priced cars. Recently, the company launc
    5·1 answer
  • Sheffield Corp. has the following transactions related to notes receivable during the last 2 months of 2020. The company does no
    7·1 answer
  • Alexis Co. reported the following information for May: Part A Units sold 6,800 units Selling price per unit $ 980 Variable manuf
    7·1 answer
  • Am I beautiful please give a honest reply.​
    13·2 answers
  • Assuming the total GDP is $1000 billion, if the government increases spending from $800 billion to $900 billion and the initial
    8·1 answer
  • Especially for projects with long lives, estimation of revenues (or benefits), costs, and cash flows is a difficult task princip
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!