A differential cost is to:

The management team of Hunderland Theme Hotel would like to have a desired profit of $80,000 in this year. The FC of Hunderland is $400,000 and the ADR is $140.00. If the UVC is 20.00% of the ADR, what is the number of additional rooms must Hunderland sell beyond the breakeven point to reach the desired profit level of $80,000?

According to the financial data of the Beach Bum hotel, ADR and UVC for the current period are $200.00 and $110.00 respectively. Imagine that the FC will increase by $65,000 due to new lease agreement for the next period. How many more rooms must be sold in order for the management of Beach Bum to cover the increased FC and still be at the breakeven for the next period?

A 100-room business hotel had an ADR of $90.00 with occupancy of 70.00% every day in 2011. Assume that the hotel’s annual FC is $400,000 and its VC is $512,000 in 2011. In 2012, the management foresees an increase in ADR by $10.00 and a decrease in the occupancy % to 60.00%. Based on the information given, what is the annual decrease or increase in occupancy % at breakeven in 2012 over 2011 (assume that there are 365 days in a year and there is no change in VC in 2012)?

What principle is one of the generally accepted accounting principles (GAAP) that states “Any business will continue to operate indefinitely, liquidation is not possible”?

Suppose that the current total revenue of a particular lodging establishment is $900,000. At this revenue level, the management of the hotel is indifferent between selecting a fixed or variable lease option for the property. If the management foresees a constant increase in the revenue levels for the near future, what should be the management’s best strategy for choosing the lease options?

On the 20th day of a particular month, room revenues at the Motor Lodge motel exceeded its breakeven points for the month. Revenue generated by the room sales after this point until the end of the month will:

The university golf shop desires to make $10,000 profits for the next period. The management calculated the shop’s CMRw as 50.00% and the total fixed cost as $110,000. What is the total revenue that needs to be generated at the desired profit level by the management of the university golf shop for the next period?

Chicken Marsala is one of the dinner menu items in Kelsey’s Home Made Food restaurant. This item has 22.00% sales mix. Also, this menu item has $11.75 contribution margin to the entire menu that has an average contribution margin of $8.00. If there are five menu items in the Kelsey’s dinner menu, how can you classify Chicken Marsala in Kelsey’s Home Made Food restaurant menu?

During the first quarter of the previous year, the current ratio at the Blue Hotel was 1.25 to 1.00. Three months into the New year, the recent current ratio is 2.00 to 1.00. Which of the following best explains the Blue Hotel’s current ratio trend into the New Year?