Suppose a Holiday Inn Hotel Has Annual Fixed Costs Applicable

question 136

Multiple Choice

Suppose a Holiday Inn Hotel has annual fixed costs applicable to its rooms of $1.2 million for its 300-room hotel.Average daily room rents are $50 per room and average variable costs are $10 for each room rented.It operates 365 days per year.What percent of occupancy is needed to breakeven?

• A)3.65%
• B)25%
• C)27.4%
• D)34.3%

Realize the significance of measuring and analyzing return on assets as a performance indicator.

Understand the purpose and time frame covered by the balance sheet and income statement.

Comprehend the structure and components of the four basic financial statements.

Recognize the role of technology in modern accounting practices.

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Definitions:

Reflective Speech

The process of thinking about and analyzing one's own thoughts and expressions in dialogue, often to understand or convey deeper meanings.

Client-Centered Therapy

Also called Rogerian therapy or nondirective therapy, a form of humanistic therapy, developed by Rogers, in which the therapist provides a warm, supportive atmosphere to improve the client’s self-concept and to encourage the client to gain insight into problems.

Transference

Transference involves the redirection of feelings and desires, originally felt towards one person, towards another, especially in psychotherapy sessions.

Psychoanalytic Phenomenon

Events or behaviors that are explained using the principles of psychoanalysis, such as the unconscious mind, defense mechanisms, and the influence of childhood experiences.