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QUESTION

MountainLodge This case study is set in 2012 in rural Vermont. The MountainLodge is an old, but wellmaintained property that has changed ownership...

I need help answering the questions 

1b. On average, how many rooms must be rented each night in season for the hotel to breakeven

2. The hotel is full on weekends in the ski season.  If all room rates were raised $5 on weekend nights, but occupancy fell to 72 rooms instead of 80, what is the revised profit before taxes for the year, per Exhibit 1?

3 What is the proposed incremental contribution margin per occupied room/day during the off-season?

4. For each decision alternative calculate the occupancy rate necessary to break-even on the incremental annual expenses.

What alternative do you recommend? Why? (Conclusion)

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Files: lodge.doc
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