Skyview Manor

Skyview Manor This case study is set in 1962 in rural Vermont. Vermont. The Skyview Manor is an old, but well-maintained  well-maintained   roerty that that has chan!ed ownershi ownershi several times times over the years. "t has no restaurant restaurant or bar. bar. "t is ositioned as a mid-rice, !ood #uality $destination% resort hotel.

The Skyview Manor is open only during during the skiing season. It opens on December 2 and closes the last day of March. The ski mountain that it serves operates on a permit from the the state which allows only 12 days of operation per year. !ach of the " rooms in the east wing rents for #1" for single occupancy or #2 for double occupancy. The west wing of the the hotel has $ rooms% all of which have spectacular views of the skiing slopes% the mountains% and the village. &ooms in this wing rent for #2 and #2" for single or double occupancy% respectively. The average occupancy rate during the season is about '( )typically% the *otel is full on weekends and averages " to + rooms occupied on week nights,. nights,. The ratio of single single versus double occupancy is 2-' on average. /perating results for the last fiscal fiscal year are shown in !0hibit 1. Mr. achack% the manager of the hotel% is concerned about the offseason months% which show losses each month and reduce the high profits reported reported during the season. *e has suggested to the owners% who ac3uired this hotel only at the end en d of the 14+1 season that to reduce the offseason losses% they should agree to keep the west wing of the hotel operating yearround. yearround. *e estimates the average occupancy rate for the offseason offseason to be between 2( and 5( for for the ne0t few years. acheck estimates that with careful attention to the offseason clientele a 5( occupancy rate for the $ rooms during the offseason would be much more likely if the owners would commit #5% for advertising each year )#" for each of eight months,. There is no evidence to indicate indicate that the 2-' ratio of singles versus doubles would be different d ifferent during the remainder of the year or in the future. &ates% however% would have to be drastically reduced. 6resent plans are to reduce them to #1 and #1" for singles and doubles. The manager7s salary is is paid over 12 months. *e acts as a caretaker of the facilities during the offseason and also contracts most of the repair and maintenance work during that time. 8sing the west wing wing would not interfere with with this work% but would cause an estimated additional #2% per year for repair and maintenance. Mrs. acheck is paid #2 a day for supervising the maids and helping with checkin. During the season% she works seven days a week. The regular desk clerk and each maid maid are paid on a daily basis at the rate of #25 and #1" respectively. The payroll ta0es and other fringe  benefits are about 2( of the payroll. 9lthough depreciation and property ta0es would not be affected by the decision to keep the west wing open% insurance would increase by #" for the year. During the offseason% it is estimated estimated that Mr. and Mrs. acheck could handle the front desk without an additional person. Mrs. acheck would% however% be paid for five days a week.

The cleaning supplies and half of the miscellaneous e0penses )room supplies, are considered a direct function of the number of rooms occupied. The other half of the miscellaneous e0penses are fi0ed and would not change with 12month operation. :inen is rented from a supply house and the cost also depends on the number or rooms occupied% but is twice as much% on average% for double occupancy as for single occupancy. The utilities include two itemstelephone and electricity. There is no electricity e0pense with the motel closed. ;ith the motel operating% electricity e0pense is a function of the number of rooms available to the public. &ooms must either  be heated or airconditioned. The telephone  bills for each of the four seasonal months were as follows' Tel ephones < #$.=month >asic Service ?harge

#25 " #24

During the offseason% only the basic service charge is paid. The monthly charge of #$ is applicable only to active telephones.

9n additional aspect of Mr. acheck7s proposal is that a covered and heated swimming pool be added to the hotel. Mr. acheck believes that this would increase the probability that the offseason occupancy rate would be above $(. 6recise estimates are impossible. It is felt that although the winter occupancy rate will not be greatly affected by adding an indoor  pool% eventually such a pool will have to be  built to stay even with the competition. The cost of such a pool is estimated to be #5%. This amount could be depreciated over five years with no salvage value )#1"% of the #5% is for a plastic  bubble and the heating units% which would  be used nine months of the year,. The only

other costs associated with the swimming  pool are #5 per month for a lifeguard% re3uired by law during the busy hours additional insurance and ta0es% estimated to  be #1%2 heating cost of #1% and a yearly maintenance cost of #1%'. If the  pool is covered% a guard is needed for 12 months. If it is not covered% a guard is needed only for three summer months )from @une 1" to September 1"% the warmest  period of the year,% and there would be no heating e0pense.

EXHIBIT 1 Skyview Manor Operating Statement, For the Fiscal ear en!e! "#"1#

%$&evenues !0penses Salaries Manager Manager7s ;ife Desk ?lerk Maids )four,

#1+%'

#1"% 2%5 2%'' A%2 #2A%5'

6ayroll Ta0es and Bringe   >enefits "%54+ Depreciation )1" year life, $% 6roperty Ta0es 5% Insurance $% &epairs and Maintenance 1A%25 ?leaning Supplies 1%42 8tilities +%$+ :inen Service 1$%42 Interest on Mortgage )"( interest rate, 21%A1+ Miscellaneous !0penses A%$15 Total !0penses 6rofit before Bederal Income Ta0es Bederal Income Ta0es )5'(,  Cet 6rofit

1$'%51 #22%$4 1%A5A #11%+5$

&SSI'(ME(T )*ESTIO(S

1. /n 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.

".

+. A.

on weekend nights% but occupancy fell to A2 rooms instead of '% what is the revised profit before ta0es for the year%  per !0hibit 1 ;hat is the proposed incremental contribution margin per occupied room=day during the offseason Bor each alternative in the case% list the annual e0penses that are incremental to that decision alternative but are not related to the room=days occupied. Bor each decision alternative calculate the occupancy rate necessary to break even on the incremental annual e0penses ;hat alternative do you recommend ;hy !valuate the profitability of the *otel as an investment for its owners. Does this affect your answer to 3uestion +

Skyview Manor Studi kasus ini ter&adi ada Tahun 1962 di daerah edesaan Vermont. Skyview Manor termasuk sudah berusia, namun teta terelihara den!an baik dan telah berindah keemilikan beberaa kali selama beberaa tahun. SM tidak  memiliki restauran dan bar.  'en!an tari( menen!ah, SM  dikenal seba!ai hotel tu&uan yan!  memberikan layanan berkualitas.

SM dibuka hanya pada musim salEu% yaitu seEak tgl 2 des sd akhir maret. awasan pegunungan ski yang disediakan oleh SM menEadapt iEin opersi dari  pemerintah selama 12 hari setiap tahun. SM memiliki " kamar di sisi timur yang disewakan dengan tarif #1" untuk single bed dan #2 untuk double bed. Sisi barat terdiri dari $ kamar% semuanya memiliki

 pemandangan salEu yang spektakuler% yaitu  pemandangan pegunungan dan pedesaan. Tarif sewa kamar di sisi barat adalah #2 untuk single bed dan #2" untuk double bed. &ata2 tingkat hunian kamar adalah '(%  biasanya kamar full booked pada akhir   pekan dan " F +( pada hari biasa. &asio kamar dengan single bed dan double bed ratarata adalah 2-'. *asil operasi pada satu tahun terakhir  terlihat pada table 1. Mr. achack% manaEer  hotel% fokus pada + bulan di mana hotel tidak dibuka% yang merugi setiap bulannya sehingga mengurangi keuntungan yang diperoleh selama musim beroperasi. Dia menyarankan kepada pemilik agar  mengakuisisi hotel pada akhir tahun 14+1 untuk mengurangi kerugian pada saat off season )musim sepi,% pemilik sepakat untuk  mengoperasikan kamar di sisi barat selama satu tahun penuh. Mr achack   memperkirakan tingkat hunian pada musim sepi antara 2(  5(. achack   memperkirakan bahwa dengan penanganan serius terhadap pelanggan di musim sepi% kemungkinan besar tingkat hunian akan mencapai 5( yaitu dengan mengeluarkan tambahan biaya iklan senilai #5% per  tahun atau #" setiap bulan selama ' bulan. Tidak ada bukti empiris yang mengindikasikan rasio single dan double  bed berbanding 2-' akan berbeda di musim sepi. Tentu saEa tarif kamar harus diturunkan menEadi #1 untuk single bed dan #1" untuk  double bed. GaEi manaEer akan dibayar selama 12  bulan. Dia bertanggung Eawab menEaga fasilitas selama musim sepi dan bertanggung  Eawab membuat kontrak untuk reparasi dan  pemeliharaan alat. 6enggunaan diperkirakan akan meningkatkan biaya tambahan untuk  reparasi dan pemeliharan senilai #2%. Mrs. achack dibayar #2 per hari untuk mensupervisi pelayan dan membantu menerima tamu. Mrs achack bekerEa A hari

seminggu. 6etugas front office dan pelayan dibayar per hari dengan tarif masingmasing #25 and #1" respectively. 6aEak gaEi 2(. Meskipun penyusutan dan paEak atas  property tidak dipengaruhi keputusan untuk  mengoperasikan sisi barat sepanEang tahun%  biaya asuransi meningkat senilai #" per  tahun. Selama musim sepi% Mr dan Mrs achack dapat menangani front office tanpa tambahan pegawai. Camun% Mrs achack  dibayar tiap " hari dalam seminggu. >iaya pembersihan peralatan dan H  biaya perlengkapan ruangan dianggap sebagai biaya yang berkaitan langsung dengan penggunaan kamar. Sedangkan H  biaya perlengkapan ruangan sisanya merupakan biaya lainlain yang tetap )tidak   berubah, selama 12 bulan. 6enggunaan selimut dianggap sebagai biaya yang  berkaitan langsung dengan penggunaan kamar yang nilainya 2 0 lipat untuk double  bed. >iaya lainlain termasuk di dalamnya telpon dan listrik. Selama kamar ditutup% tidak ada biaya listrik. >iaya listrik  merupakan biaya yang berkaitan langsung dengan penggunaan kamar% biasanya kamar  dipanaskan atau didinginkan suhunya dengan ac listrik. Tagihan telpon selama 5  bulan adalah sebagai berikut' panggilan < #$.=bulan Service charge

#25 # " #24

Selama tutup yang dibayarkan hanya service charge senilai #$ per bulan. Mr  mengusulkan pembangunan kolam renang yang diyakini akan meningkatkan keuntungan pada musim sepi dengan meningkatnya tingkat hunian di atas $(. @umlah yang pasti sulit diperkirakan. Meskipun tingkat hunian pada musim dingin tidak dipengaruhi oleh keberadaan kolam renang% namun kolam renang tersebut akan menEadi daya tarik persaingan.

6embangunan kolam renang diperkirakan akan menelan biaya senilai #5%. >iaya ini akan disusutkan selama " tahun tanpa nilai residu. )#1"% dari #5% adalah  biaya plastic dan pemanas yang digunakan selama 4 bulan per tahun,. >iaya tambahan  berkaitan dengan kolam renang adalah biaya  pengamanan senilai #5 per bulan% sebagaimana dipersyaratkan oleh peraturan selama Eam sibuk. >iaya asuransi dan paEak senilai #1%2% >iaya pemanas #1% dan  biaya pemeliharaan #1%' per tahun. @ika kolam renang diberi penutup% petugas  pengamanan diperlukan selama 12 bulan. @ika kolam renang tidak ditutup% petugas  pengamanan diperlukan hanya selama $ bulan musim panas )1" @uni sd 1" September% hawa terpanas selama setahun, dan tidak diperlukan biaya untuk memanaskan air kolam renang. +ET&(&&(

1. >erapa ratarata Eumlah kamar yang harus diEual per malam agar >!6 2. Selama musim ski% hotel selalu penuh. @ika tariff hotel dinaikkan #" pada weekend% namun hunian turun menEadi A2 kamar% bukan ' kamar% berapa keuntungannya $. >erapakah incremental Margin ontribusi untuk usulan pembangunan kolam renang selama musim sepi 5. >uatlah alternative dan biaya tahunan tambahan dari tiap alternative yang dibuat yang tidak berhubungan dengan kamar. ". 8ntuk masingmasing alternative tersebut% berapa tingkat hunian kamar sehingga mencapai >!6 dengan tambahan biaya tersebut +. 9lternatif mana yang 9nda rekomendasikan Mengapa