Can someone please answer the question below?
Question 2: Set up a table with standard, junior and presidential suite in a column and labor hours, units, total labor hours, total cost of labor, and percentage total labor across the headings. For example, for the standard row, labor hours is 1200 and units is 150. Multiply these to find the total labor hours. Then multiply total labor hours by $45 (given) and this is the total cost of labor. Do this same procedure for each row and then add the total cost of labor column. To find the percentage for the standard room, divide the total cost of labor by the total of the column. Do the same procedure for junior and presidential suite percentages.
Question 5: Simply take the price given as 1050000 and subtract the total found in question 4.
For question 7, suggest using 25.5 percent as the profit margin. Then simply take the total found in question 4 and divide it by (1-0.255) to find the price.
For question 8, at 10 units, find the revenue by multiplying the p x q. Then subtract direct materials and direct labor to find the contribution margin. Subtract the fixed cost you found earlier in question 3 (3389053) to find the gross profit and interpret it.
Question 9 is similar to question 8.
For question 10, note fixed cost of 3389053 (from question 3). Divide the fixed cost by the contribution–found by 1050000 (the price) – 950000 (the variable costs). This gives you the break even number of rooms.