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BIZ201 Accounting For Decision Making – Case Study Help Analysis

BIZ201 Accounting For Decision Making Assignment Answer

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Assignment Details:

  • Course Code: BIZ201
  • Course Title: Accounting for Decision Making
  • University: Australian Catholic University
  • Country: AU
  • Referencing Styles: APA
  • Words: 1500

Choose promotional activities from the list in appendix 2 to create a promotional plan for the Crystal Hotel Wellness Centre. Justify your choice of activities based on the available budget and ROI.TASK 4As your final task as a sales and marketing intern, you have been asked to evaluate a further promotional plan for 1 month –this time to boost occupancy rates at the Crystal Hotel. This will include a promotional accommodation rate offer: the standard room rate (“rack rate”) = $250 per night. The hotel has 100 rooms. Monthly occupancy rates = 30% (without promotion) REQUIRED Consider a promotional room rate = $170 per night for 1 month. Assume variable cost per room = $50 per night. Fixed costs = $20,000 for 1 month. Conduct the following Break-even analysis:

  1. The contribution margin for one night’s accommodation per room at the promotional room rate.
  2. The contribution margin ratio at the promotional room rate.
  3. The monthly break-even point in the number of rooms and revenue to be collected.
  4. The number of rooms to be occupied at the promotional room rate to generate net profit before tax = $225,000 for 1 month.
  5. Comment on CVP analysis based on your calculations

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