1. Calculating the budgeted room revenue for each three months:
|
Particulars |
December |
January |
February |
|
Occupancy rate of rooms |
90% |
95% |
85% |
|
Room rate (Average) |
$ 180 |
$ 198 |
$ 198 |
|
No. of rooms |
20 |
20 |
20 |
|
Revenue of room (Budget) |
$ 3,240 |
$ 3,762 |
$ 3,366 |
2. Discussing how the management of Dorquay Hotel could have estimated the occupancy rate:
From the evaluation it could be identified that Dorquay Hotel estimates a period of high demand with no demands in subsequent months. Moreover, the company directly allows longer duration stay while neglecting the short duration stage that is needed by customers. This eventually allowed the organisation to maintain the relevant occupancy rate in slow season. The relevant decline and occupancy rate would be seen from December to January, which was more or less 10%. Decline in occupancy rate directly indicates the overall increment in room charges that has been implemented by the organisation in November (Francis et al., 2015). The occupancy rate has mainly declined due to increment in room rent, which is directly reducing demand from potential customers.
1. Depicting whether Mr Smith should take the trip and outline any ethical concerns involved:
From the evaluation of overall case study it it advisable that Mr Smith should n ot take the trip to Los Angeles with his family, as it issss unethical activity. The family trip sponsorship that will be conducted by AnitahLoh is mainly unethical, as she is the sales representative of Dogto Ltd who is trying to sell their software. Moreover, taking the family trip would eventually result in dishonest behaviour in part of Mr Smith, which could increase unethical behaviour in workplace. The inheritance risk is mainly identified as the overall ethical concern involved in the case. This gift is mainly provided as a gift to Mr Smith who would chose the software packages of the company and makes unethical decision (Collier, 2015).
2. Depicting the significance and limitations of Practical Solution Ltd of having employee code of conduct and stating the measures that needs to be included in such code of conduct:
Creation of employee code of conduct is one of the significant endeavours that need to be conducted by organisation. This employee code could eventually help in outlining the overall acceptable behaviour that needs to be conducted by employees of the organisation. The main significance of using the code of conduct for employees is that it increases professionalism in the organisation, while the major drawback is the limitations of the employee code of conduct, as it would not address all the situations (Francis et al., 2015).
With the help of employee code of conduct the overall organisation are mainly able to bear relevant community that directly affect activities of the company. The overall employee code mainly helps in developing the business conduct policy, which directly affect customer base of the organisation. Moreover, with the help of employee code of conduct both private and public interest could be served. However, there are disadvantages of employee code of conduct, as massive scandal could be been, which is been conducted by companies. Therefore, it is estimated that code of conduct does not allow the organization to reduce unethical measures in the company.
|
Particulars |
Units |
Amount |
|
Per unit selling price |
$ 60.00 |
$ 2,100,000.00 |
|
Per unit variable manufacturing cost |
$ 28.00 |
$ 980,000.00 |
|
Per unit variable marketing and distribution costs |
$ 12.00 |
$ 420,000.00 |
|
Per unit contribution margin |
$ 20.00 |
$ 700,000.00 |
|
Fixed Costs: |
||
|
Annual fixed manufacturing costs |
$ 120,000.00 |
|
|
Annual fixed non-manufacturing costs |
$ 370,000.00 |
|
|
Total fixed costs |
$ 490,000.00 |
|
|
Break-even point (in units) |
24,500.00 |
|
|
Break-even (in sales) |
$ 1,470,000.00 |
|
Particulars |
Units |
|
Per unit selling price (A) |
$ 60.00 |
|
Annual volume (B) |
35,000.00 |
|
Break-even (in units) (C) |
24,500.00 |
|
Margin of safety (in units) (D=B-C) |
10,500.00 |
|
Margin of safety (in dollars) (E=A*D) |
$ 630,000.00 |
|
Particulars |
Units |
|
Annual volume |
32,000.00 |
|
Per unit contribution margin |
$ 20.00 |
|
Total fixed costs |
$ 490,000.00 |
|
Profit |
$ 150,000.00 |
|
Particulars |
Units |
|
Per unit selling price |
$ 60.00 |
|
Per unit variable manufacturing cost |
$ 28.00 |
|
Per unit variable marketing and distribution costs |
$ 16.00 |
|
Contribution margin per unit |
$ 16.00 |
|
Annual fixed manufacturing costs |
$ 120,000.00 |
|
Annual fixed non-manufacturing costs |
$ 290,000.00 |
|
Total fixed costs |
$ 410,000.00 |
|
Units to be produced for achieving the same profit |
35,000.00 |
The relevant recommendation of producing 35,000 units needs to be produced for achieving the overall profits level of 2015 in 2016.
References
Collier, P. M. (2015). Accounting for managers: Interpreting accounting information for decision making. John Wiley & Sons.
Francis, B., Hasan, I., Park, J. C., & Wu, Q. (2015). Gender differences in financial reporting decision making: Evidence from accounting conservatism. Contemporary Accounting Research, 32(3), 1285-1318.
Hrasky, S., & Jones, M. (2016, December). Lake Pedder: Accounting, environmental decision-making, nature and impression management. In Accounting Forum (Vol. 40, No. 4, pp. 285-299). Elsevier.
Palmer, P., Pournara, M., Espinosa, D. I., & Palmer, H. (2014). Decision making and the national intelligence model: No accounting for decision bias. Australasian Policing, 6(2), 2.
Pettigrew, A. M. (2014). The politics of organizational decision-making. Routledge.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download