Goran Blomberg
Not what you're looking for?
Goran Blomberg is interested in investing in a new rooms-only lodging property. He needs some financial projections for the proposed operations. He provides the following:
1. Room sales
Average room rate $50
Average daily occupancy 65%
Average rooms per day 50
2. Fixed labor- $12000/month
3. Other fixed expenses
Depreciation $5000/month
utilities $3000/month
Insurance $1000/month
Other $3000/month
4. Variable labor- 15%
5. Other variable expenses
Other room expenses 5%
Administration 4%
Marketing 5%
Utilities 3%
Other 8%
6. Income tax rate- 20%
Q.
1. Determine the projected net income using the above information. Assume the property will be open 365 days a year.
2. Determine the projected net income if the room rate is increased to $55.
3. Independent of #2, determine the projected net income if the room rate is increased to $60 and variable labor is %18.
Purchase this Solution
Solution Summary
The expert examines Goran Blomberg interested in new rooms-only lodging property.
Solution Preview
1. Room Sales
Average Room Rate $50.00
Average Daily Occupancy 65%
Average Daily Rooms 50
2. Fixed Labor $12,000
3. Other Fixed Expenses
Dpereciation $5,000
Utilities $3,000
Insurance $1,000
Other $3,000
4. Variable Labor 15%
5. Other Variable Expenses
Other Room ...
Education
- BE, Bangalore University, India
- MS, University of Wisconsin-Madison
Recent Feedback
- "Your explanation to the answers were very helpful."
- "What does 1 and 0 means in the repair column?"
- "Went through all of the formulas, excellent work! This really helped me!"
- "try others as well please"
- "Thank you, this helped a lot. I was not sure how to plug in those numbers to a formula. This was a great help. Now I have to figure out how to explain cost of capital is used in net present value analysis, and how cost of capital is used in net present value analysis. This stuff gets confusing."
Purchase this Solution
Free BrainMass Quizzes
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)
Motivation
This tests some key elements of major motivation theories.
Lean your Process
This quiz will help you understand the basic concepts of Lean.
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.