skyview_assignment requirements

Skyview_assignment - Requirement Management Report This assignment must be undertaken in groups of 3 students any arrangements other than this is

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Requirement: Management Report This assignment must be undertaken in groups of 3 students – any arrangements other than this is subject to approval by the Unit Convenor – no retrospective approval will be given. Mr. Snowman, the owner of Skyview Manor, has contacted the Swinburne HBC110N Accounting Services to seek assistance in determining whether to open his hotel in the off season and if the construction of a swimming pool will enhance the hotel’s profit. He also would like other information about financial risks associated with use of the hotel during the on season. Mr. Snowman has specifically requested you address the following issues in the report: 1. To assess viability of the hotel, the number of rooms (on average) that must be rented each night in season for the hotel to breakeven. 2. Given that the hotel is full on weekends in the ski season, the impact on profit before taxes if all room rates were raised $5 on weekend nights, but occupancy falling to 72 rooms instead of 80. 3. The financial viability of opening during the off season ( hint compare the increment revenue with the incremental costs ) if no pool is constructed. 4. The breakeven occupancy for the off season ( hint use the weighted average contribution method ) if no pool constructed. 5. Assessment of whether the hotel should construct the swimming pool ( assess all possible options ). 6. A management report giving your recommendations for the hotel in light of your financial analysis of the above issues. All detailed calculations should be attached as an appendix. The body of the report should only include summary figures. The report should be no more than 2000 words. Additional information supplied by Mr. Snowman to assist in your analysis: On season is 17 weeks , Off season is 35 weeks During the off season only one maid will be employed. Electricity charge is considered fixed per season.
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This note was uploaded on 10/23/2009 for the course HES 2340 taught by Professor Tomedwards during the Three '09 term at Swinburne.

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Skyview_assignment - Requirement Management Report This assignment must be undertaken in groups of 3 students any arrangements other than this is

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