Business, 19.03.2021 18:10 mahkitheking16

Port Aransas Resort Company (PARC) has bought a prime parcel of beachfront property and plans to build a luxury hotel. After meeting with the architectural team, the owners have drawn up some information to make preliminary plans for construction. Excluding the suites, which are not part of this decision, the hotel will have four kinds of rooms: beachfront non-smoking, beachfront smoking, lagoon view non-smoking, and lagoon view smoking. In order to decide how many of each of the four kinds of rooms to plan for, the owners will consider the following information. • After adjusting for expected occupancy, the average nightly revenue for a beachfront non-smoking room is $190. The average nightly revenue for a lagoon view non-smoking room is $170. Smokers will be charged an extra $15.
• Construction costs vary. The cost estimate for a lagoon view room is $19,000 and for a beachfront room is $20,000. Air purifying systems and additional smoke detectors and sprinklers add $3,000 to the cost of any smoking room. PARC has raised $6.3 million in construction funds for this portion of the building.
• There will be at least 100 but no more than 180 beachfront rooms.
• Design considerations require that the number of lagoon view rooms be at least 1.5 times the number of beachfront rooms, and no more than 2.5 times that number.
• Industry trends recommend that the number of smoking rooms be no more than 25% of the number of non-smoking rooms.
A. Develop the linear programming model to maximize revenue
B. Solve the LP model in Excel and submit your work including the reports.
C. What is the solution?
D. PARC is a little surprised at the results. Even though industry statistics show that the number of people requesting smoking rooms has declined, they feel that they may need more smoking rooms. Without re-solving the problem in Excel, how can they use the reports to determine the effect that adding more smoking rooms would have on their revenue?

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 06:30

Selected data for stick’s design are given as of december 31, year 1 and year 2 (rounded to the nearest hundredth). year 2 year 1 net credit sales $25,000 $30,000 cost of goods sold 16,000 18,000 net income 2,000 2,800 cash 5,000 900 accounts receivable 3,000 2,000 inventory 2,000 3,600 current liabilities 6,000 5,000 compute the following: 1. current ratio for year 2 2. acid-test ratio for year 2 3. accounts receivable turnover for year 2 4. average collection period for year 2 5. inventory turnover for year 2

Answers: 2

Answer

Business, 22.06.2019 07:40

Shelby company produces three products: product x, product y, and product z. data concerning the three products follow (per unit): product x product y product z selling price $ 85 $ 65 $ 75 variable expenses: direct materials 25.50 19.50 5.25 labor and overhead 25.50 29.25 47.25 total variable expenses 51.00 48.75 52.50 contribution margin $ 34.00 $ 16.25 $ 22.50 contribution margin ratio 40 % 25 % 30 % demand for the company’s products is very strong, with far more orders each month than the company can produce with the available raw materials. the same material is used in each product. the material costs $8 per pound, with a maximum of 4,400 pounds available each month. required: a. compute contribution margin per pound of materials used. (round your intermediate calculations and final answers to 2 decimal places.) contribution margin per pound product x $ product y $ product z $ b. which orders would you advise the company to accept first, those for product x, for product y, or for product z? which orders second? third? product x product y product z

Answers: 3

Answer

Business, 22.06.2019 12:30

Suppose you win a small lottery and have the choice of two ways to be paid: you can accept the money in a lump sum or in a series of payments over time. if you pick the lump sum, you get $2,950 today. if you pick payments over time, you get three payments: $1,000 today, $1,000 1 year from today, and $1,000 2 years from today. 1) at an interest rate of 6% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 2) at an interest rate of 9% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 3) years after you win the lottery, a friend in another country calls to ask your advice. by wild coincidence, she has just won another lottery with the same payout schemes. she must make a quick decision about whether to collect her money under the lump sum or the payments over time. what is the best advice to give your friend? a) the lump sum is always better. b) the payments over time are always better. c) it will depend on the interest rate; advise her to get a calculator. d) none of these answers is good advice.

Answers: 2

Answer

Business, 22.06.2019 14:20

For the year ended december 31, a company has revenues of $323,000 and expenses of $199,000. the company paid $52,400 in dividends during the year. the balance in the retained earnings account before closing is $87,000. which of the following entries would be used to close the dividends account?

Answers: 3

Answer

You know the right answer?

Port Aransas Resort Company (PARC) has bought a prime parcel of beachfront property and plans to bui...

Questions