Crystal Coast Ocean Resort The Crystal Coast Ocean Resort (CCOR) is a large, family-owned resort located on one of the finest beaches in North Carolina. The Resort is locally called the “Ramada Inn: Crystal Coast Ocean Resort”, because it has a contractual relationship with Ramada Inn, Inc which requires Ramada to provide reservation services and certain marketing services. In turn CCOR pays an annual fee to Ramada and displays the Ramada Inn sign. Ramada has the right, under contract, to require CCOR to meet Ramada standards for resort services, cleanliness, etc, and regularly visits CCOR to make sure that these standards are being met. CCOR’s main building has a T-configuration, where the top of the T is road-side and the bottom of the T is at the beach. This allows all rooms to have at least a partial view of the beach. There are five types of rooms for guests, ocean front (actually facing the ocean, at the bottom of the T), ocean view (along the sides of the T), pool side (first floor, with patios having direct access to the pool), and one and two bedroom suites that are located at the top of the T. These rooms are distributed as follows. No. of Rooms Ocean front 50 Ocean view 250 Pool Side 18 One Bedroom Suite 16 Two Bedroom Suite 16 350 The season for CCOR is year-round because of the mild winters, though the occupancy rates vary from 100% during the summer months to less than 50% in the winter months. The average annual occupancy rate for each type of rooms is 80%, 75%, 60%, 50% and 50% for the ocean front, ocean view, pool side, one room and two room suites, respectively. Because the Resort is popular with families, the average number of persons per room is greater than for some other motels or hotels. The average number of occupants is three for the ocean front, ocean view, and pool side rooms, four for the one bedroom suite, and 6 for the two bedroom suite. The suite are also somewhat larger, 500 square feet for the one bedroom suite, and 900 square feet for the two bedroom suite, while all other room are 300 square feet. CCOR does not have some of the amenities of competing resorts, but instead competes on value pricing and reliable service. It does not offer special services such as room service, exercise room, restaurant, or lounge but it sets high standards for room cleanliness and for the appearance and cleanliness of the pool and grounds. Also, CCOR offer a free breakfast and a free afternoon snack. Because of high demand in summer months, CCOR sets relatively high market prices during this season, ranging from $125 to $350 per room depending on room type and day of week. Prices are lower in the fall and spring, and substantially lower in the winter. In order to have better information about price setting and profitability analysis for each of the five room types: ocean front, ocean view, pool side, one bedroom and two bedroom suites, CCOR has gathered additional information .

1. Crystal Coast Ocean Resort
The Crystal Coast Ocean Resort (CCOR) is a large, family-
owned resort located on one of the finest beaches in North
Carolina. The Resort is locally called the “Ramada Inn:
Crystal Coast Ocean Resort”, because it has a contractual
relationship with Ramada Inn, Inc which requires Ramada to
provide reservation services and certain marketing services. In
turn CCOR pays an annual fee to Ramada and displays the
Ramada Inn sign. Ramada has the right, under contract, to
require CCOR to meet Ramada standards for resort services,
cleanliness, etc, and regularly visits CCOR to make sure that
these standards are being met. CCOR’s main building has a T-
configuration, where the top of the T is road-side and the
bottom of the T is at the beach. This allows all rooms to have
at least a partial view of the beach. There are five types of
rooms for guests, ocean front (actually facing the ocean, at the
bottom of the T), ocean view (along the sides of the T), pool
side (first floor, with patios having direct access to the pool),
and one and two bedroom suites that are located at the top of
the T. These rooms are distributed as follows.
No. of Rooms
Ocean front
50
Ocean view
250
Pool Side
18
One Bedroom Suite
16
Two Bedroom Suite
16
350

2. The season for CCOR is year-round because of the mild winters,
though the occupancy rates vary from 100% during the summer
months to less than 50% in the winter months. The average
annual occupancy rate for each type of rooms is 80%, 75%,
60%, 50% and 50% for the ocean front, ocean view, pool side,
one room and two room suites, respectively. Because the
Resort is popular with families, the average number of persons
per room is greater than for some other motels or hotels. The
average number of occupants is three for the ocean front, ocean
view, and pool side rooms, four for the one bedroom suite, and
6 for the two bedroom suite. The suite are also somewhat
larger, 500 square feet for the one bedroom suite, and 900
square feet for the two bedroom suite, while all other room are
300 square feet.
CCOR does not have some of the amenities of competing
resorts, but instead competes on value pricing and reliable
service. It does not offer special services such as room service,
exercise room, restaurant, or lounge but it sets high standards
for room cleanliness and for the appearance and cleanliness of
the pool and grounds. Also, CCOR offer a free breakfast and a
free afternoon snack.
Because of high demand in summer months, CCOR sets
relatively high market prices during this season, ranging from
$125 to $350 per room depending on room type and day of
week. Prices are lower in the fall and spring, and substantially
lower in the winter. In order to have better information about
price setting and profitability analysis for each of the five room
types: ocean front, ocean view, pool side, one bedroom and two
bedroom suites, CCOR has gathered additional information to
help it determine the cost for each occupied room. Les Broom,
the accounting manager, assembled the following data. The
data includes information on the four annual resource costs
taken directly from CCOR’s accounting reports, as well as
activity and cost driver information developed by Les.
Annual Resource Costs at CCOR

3. Facilities Cost - Utilities210,000$
Other Facilities Costs
Depreciation800,000
Tax500,000
Interest600,000
Total1,900,000$
General and Administrative
Accounting165,000
General Administration155,000
Purchasing and HR88,000
Total408,000$
Hotel Operations
Wages1,500,000
Supplies180,000
Equipment and repair240,000
Total 1,920,000$
The following is a list of the nine activities at CCOR identified
by Les, as well as information he developed to assign resource
costs to these activities. Les performed a careful analysis and
determined the approximate percentage of each type of resource
costs that could be allocated to each of the nine activities.
ActivitiesUtilitiesOther FacilitiesGen and AdmOperations
Housekeeping5%5%20%
Laundry10%10%10%
Grounds and Pool40%20%10%
Registration15% 20%
Breakfast room10%15%10%
Administration5%20%0%
Security5%10%10%
Room repair and maintenance10%20%20%

4. Utilities100%0%0%0%
Total100%100%100%100%
Resources
The following activity-consumption cost drivers are used to
assign activity costs to cost objects:
Activities
Cost Driver
Housekeeping
square feet
Laundry
number of occupants
Grounds and Pool
number of rooms
Registration
number of occupied rooms
Breakfast room
number of occupants
Administration
number of occupied rooms
Security
number of rooms
Room repair and maintenance
square feet
Utilities
square feet
The cost drivers are interpreted as follows. Housekeeping
costs are allocated to the room type based on the number of
square feet in the room. Laundry is allocated to the room type

5. based on the number of occupants in that room type for the
year. Grounds and pool expenses are allocated an equal
amount to each room. Registration is allocated on the basis of
the number of occupied rooms, that is, the number of nights a
room type is occupied). The other activities are allocated using
the cost drivers in a similar way..
In addition to the cost of the nine activities, CCOR has direct
costs for each type of room, as shown below. These direct costs
are incurred each night a room is occupied. These costs are
called “external units” in the Oros software.
External Units (Direct Costs)OceanfrontOceanviewPool Side1
Room Suite2 Room Suite
Kitchenware replacement/repair2.00$ 3.00$
Complimentary toiletries2.00$ 2.00$ 2.00$
3.00$ 4.00$
Complimentary coffee and tea3.00$ 3.00$
3.00$ 5.00$ 8.00$
Required
1. Download and install the Oros Quick ABC program (WinZip
file). The Oros Quick software is in self-extracting zipped file.
Create a directory on your computer and download the file to
that directory. Double-click on the file and it will load in that
directly. Then double click on the Setup executable file to
install the software (you can safely uninstall it later).
2. Download the Short Oros tutorial.
3. Work through the Short Oros tutorial (you can skip the
sections on attributes and on the balanced scorecard; these are
explained in the full tutorial).
4. Create a folder labeled “Ocean Resort.” You will save to this
folder the several files of the Oros ABC model you create when
developing the Oros model.

6. 5. Use the information in the case above and in the tutorial to
complete an ABC costing application using Oros; determine the
ABC-based unit costs for each occupied room for each room
type. An occupied room is defined as a room that is occupied
for that night. .
6. Comment briefly on what management insights are created
with the ABC analysis of profitability by room type.
Blocher,Stout,Cokins,Chen: Cost Management, 4e 1
©The McGraw-Hill Companies, Inc. 2008
_1222233294.xls
DataResourcesPer YearFacilities Cost - Utilities$
210,000Other Facilities
CostsDepreciation800,000Tax500,000Interest600,000Total$
1,900,000General and
AdministrativeAccounting165,000General
Administration155,000Purchasing and HR88,000Total$
408,000Hotel
OperationsWages1,500,000Supplies180,000Equipment and
repair240,000Total$ 1,920,000Resources to
ActivitiesResourcesActivity-
consumptionActivitiesUtilitiesOther FacilitiesGen and
AdmOperationsCost DriverHousekeeping5%5%20%square
feetLaundry10%10%10%per person nightGrounds and
Pool40%20%10%per roomRegistration15%20%per room
nightBreakfast room10%15%10%per person
nightAdministration5%20%0%per room
nightSecurity5%10%10%per roomRoom repair and
maintenance10%20%20%square

7. feetUtilities100%0%0%0%square
feetTotal100%100%100%100%Activities to Cost ObjectsCost
ObjectsActivitiesOceanfrontOceanviewPool Side1 Room Suite2
Room SuiteDriverHousekeepingsquare feetLaundryper person
nightGrounds and Poolper roomRegistrationper room
nightBreakfast roomper person nightAdministrationper room
nightSecurityper roomRoom Repair and maintenancesquare
feetUtilitiessquare feetExternal Units (Direct
Costs)OceanfrontOceanviewPool Side1 Room Suite2 Room
SuiteKitchenware replacement/repair$ 2.00$
3.00Complimentary toiletries$ 2.00$ 2.00$ 2.00$ 3.00$
4.00Complimentary coffee and tea$ 3.00$ 3.00$ 3.00$
5.00$ 8.00AverageAverageRoom sizeNo. of
RoomsOccupancy%Persons/Rm(sq
ft)Oceanfront5075%3300Oceanview25075%3300Pool
Side1875%3300One Bedroom Suite1675%4500Two Bedroom
Suite1675%6900350
Crystal Coast Ocean ResortCrystal Coast Ocean ResortOcean
frontOcean viewPool Side1 Room Suite2 Room
SuiteTotalNumber of Rooms50250181616350Average
Occupancy80%75%60%50%50%75%Total Room
nights14,60068,4383,9422,9202,92092,820Average person per
room night33346Total Persons per room
type43,800205,31311,82611,68017,520290,139Room size
(square feet)300300300500900Total square feet for room
type15,00075,0005,4008,00014,400117,800First Stage
Allocation: Allocate Resources to
ActivitiesTotalUtilitiesFacilitiesAdminOperationsAssigned$
210,000$ 1,900,000$ 408,000$ 1,920,000$ 4,438,000First:
Resource Consumption
DriversUtilitiesFacilitiesAdminOperationsACTIVITIESHouseke
eping5%5%20%Laundry10%10%10%Grounds and
Pool40%20%10%Registration15%0%20%Breakfast
room10%15%10%Administration5%20%0%Security5%10%10%
Room repair and
maintenance10%20%20%Utilities100%0%0%0%Total100%100

8. %100%100%Second: Allocate Resources to Activities Using
Resource Consumption
DriversUtilitiesFacilitiesAdminOperationsTotalActivity-
consumptionACTIVITIESCost DriverHousekeeping$ 95,000$
20,400$ 384,000$ 499,400square
feetLaundry190,00040,800192,000422,800per occupantGrounds
and Pool760,00081,600192,0001,033,600per
roomRegistration285,000- 0384,000669,000per room
nightBreakfast room190,00061,200192,000443,200per
occupantAdministration95,00081,600- 0176,600per room
nightSecurity95,00040,800192,000327,800per roomRoom repair
and maintenance190,00081,600384,000655,600square
feetshould this be determined by occupancy?Utilities$
210,000- 0- 0- 0210,000square feetas above$ 210,000$
1,900,000$ 408,000$ 1,920,000$ 4,438,000Second Stage
Allocation: Allocate Activity Costs to Room TypeCost Driver
Percentage of Total for each Room TypeTotalTotal
Occupants15.10%70.76%4.08%4.03%6.04%100.00%Room size,
all rooms (sq
ft)12.73%63.67%4.58%6.79%12.22%100.00%Total Room
nights15.73%73.73%4.25%3.15%3.15%100.00%Total number
of rooms14.29%71.43%5.14%4.57%4.57%100.00%Second:
Allocate Activity Costs to Room
TypeACTIVITIESOceanfrontOceanviewPool Side1 Room Suite2
Room
SuiteTotalcheck…Housekeeping63,591317,95422,89333,91561,
047$
499,400499,400Laundry63,827299,18917,23317,02125,531422,
800422,800Grounds and
Pool147,657738,28653,15747,25047,2501,033,6001,033,600Reg
istration105,230493,26628,41221,04621,046669,000669,000Bre
akfast
room66,907313,62418,06517,84226,763443,200443,200Adminis
tration27,778130,2107,5005,5565,556176,600176,600Security4
6,829234,14316,85814,98514,985327,800327,800Room repair
and

9. maintenance83,480417,40230,05344,52380,141655,600655,600
Utilities26,740133,7019,62614,26125,671210,000210,000TOTA
L$ 632,039$ 3,077,775$ 203,797$ 216,399$ 307,990$
4,438,0004,438,000Cost per occupied room$ 43.29$ 44.97$
51.70$ 74.11$ 105.48Plus: Direct Costs per room
nightKitchenware replacement/repair$ 2.00$
3.00Complimentary toiletries$ 2.00$ 2.00$ 2.00$ 3.00$
4.00Complimentary coffee and tea$ 3.00$ 3.00$ 3.00$
5.00$ 8.00Direct Costs TotalKitchenware replacement/repair$
- 0$ - 0$ - 0$ 29,200$ 43,800$ 73,000Complimentary
toiletries$ 29,200$ 29,200$ 29,200$ 43,800$ 58,400$
189,800Complimentary coffee and tea$ 43,800$ 43,800$
43,800$ 73,000$ 116,800$ 321,200Total Direct costs$
73,000$ 73,000$ 73,000$ 146,000$ 219,000$
584,000Total Cost for Each Product$ 705,039$ 3,150,775$
276,797$ 362,399$ 526,990$ 5,022,000Total Cost per
occupied room$ 48.290$ 46.039$ 70.217$ 124.109$
180.476
&A
Page &P
_1222443978.xls
DataResourcesPer YearFacilities Cost - Utilities$
210,000Other Facilities
CostsDepreciation800,000Tax500,000Interest600,000Total$
1,900,000General and
AdministrativeAccounting165,000General
Administration155,000Purchasing and HR88,000Total$
408,000Hotel
OperationsWages1,500,000Supplies180,000Equipment and
repair240,000Total$ 1,920,000Resources to
ActivitiesResourcesActivity-
consumptionActivitiesUtilitiesOther FacilitiesGen and
AdmOperationsCost DriverHousekeeping5%5%20%square
feetLaundry10%10%10%per person nightGrounds and
Pool40%20%10%per roomRegistration15%20%per room
nightBreakfast room10%15%10%per person

10. nightAdministration5%20%0%per room
nightSecurity5%10%10%per roomRoom repair and
maintenance10%20%20%square
feetUtilities100%0%0%0%square
feetTotal100%100%100%100%Activities to Cost ObjectsCost
ObjectsActivitiesOceanfrontOceanviewPool Side1 Room Suite2
Room SuiteDriverHousekeepingsquare feetLaundryper person
nightGrounds and Poolper roomRegistrationper room
nightBreakfast roomper person nightAdministrationper room
nightSecurityper roomRoom Repair and maintenancesquare
feetUtilitiessquare feetExternal Units (Direct
Costs)OceanfrontOceanviewPool Side1 Room Suite2 Room
SuiteKitchenware replacement/repair$ 2.00$
3.00Complimentary toiletries$ 2.00$ 2.00$ 2.00$ 3.00$
4.00Complimentary coffee and tea$ 3.00$ 3.00$ 3.00$
5.00$ 8.00AverageAverageRoom sizeNo. of
RoomsOccupancy%Persons/Rm(sq
ft)Oceanfront5075%3300Oceanview25075%3300Pool
Side1875%3300One Bedroom Suite1675%4500Two Bedroom
Suite1675%6900350
Crystal Coast Ocean ResortCrystal Coast Ocean ResortOcean
frontOcean viewPool Side1 Room Suite2 Room
SuiteTotalNumber of Rooms50250181616350Average
Occupancy80%75%60%50%50%75%Total Room
nights14,60068,4383,9422,9202,92092,820Average person per
room night33346Total Persons per room
type43,800205,31311,82611,68017,520290,139Room size
(square feet)300300300500900Total square feet for room
type15,00075,0005,4008,00014,400117,800First Stage
Allocation: Allocate Resources to
ActivitiesTotalUtilitiesFacilitiesAdminOperationsAssigned$
210,000$ 1,900,000$ 408,000$ 1,920,000$ 4,438,000First:
Resource Consumption
DriversUtilitiesFacilitiesAdminOperationsACTIVITIESHouseke
eping5%5%20%Laundry10%10%10%Grounds and
Pool40%20%10%Registration15%0%20%Breakfast

11. room10%15%10%Administration5%20%0%Security5%10%10%
Room repair and
maintenance10%20%20%Utilities100%0%0%0%Total100%100
%100%100%Second: Allocate Resources to Activities Using
Resource Consumption
DriversUtilitiesFacilitiesAdminOperationsTotalActivity-
consumptionACTIVITIESCost DriverHousekeeping$ 95,000$
20,400$ 384,000$ 499,400square
feetLaundry190,00040,800192,000422,800per occupantGrounds
and Pool760,00081,600192,0001,033,600per
roomRegistration285,000- 0384,000669,000per room
nightBreakfast room190,00061,200192,000443,200per
occupantAdministration95,00081,600- 0176,600per room
nightSecurity95,00040,800192,000327,800per roomRoom repair
and maintenance190,00081,600384,000655,600square
feetshould this be determined by occupancy?Utilities$
210,000- 0- 0- 0210,000square feetas above$ 210,000$
1,900,000$ 408,000$ 1,920,000$ 4,438,000Second Stage
Allocation: Allocate Activity Costs to Room TypeCost Driver
Percentage of Total for each Room TypeTotalTotal
Occupants15.10%70.76%4.08%4.03%6.04%100.00%Room size,
all rooms (sq
ft)12.73%63.67%4.58%6.79%12.22%100.00%Total Room
nights15.73%73.73%4.25%3.15%3.15%100.00%Total number
of rooms14.29%71.43%5.14%4.57%4.57%100.00%Second:
Allocate Activity Costs to Room
TypeACTIVITIESOceanfrontOceanviewPool Side1 Room Suite2
Room
SuiteTotalcheck…Housekeeping63,591317,95422,89333,91561,
047$
499,400499,400Laundry63,827299,18917,23317,02125,531422,
800422,800Grounds and
Pool147,657738,28653,15747,25047,2501,033,6001,033,600Reg
istration105,230493,26628,41221,04621,046669,000669,000Bre
akfast
room66,907313,62418,06517,84226,763443,200443,200Adminis

12. tration27,778130,2107,5005,5565,556176,600176,600Security4
6,829234,14316,85814,98514,985327,800327,800Room repair
and
maintenance83,480417,40230,05344,52380,141655,600655,600
Utilities26,740133,7019,62614,26125,671210,000210,000TOTA
L$ 632,039$ 3,077,775$ 203,797$ 216,399$ 307,990$
4,438,0004,438,000Cost per occupied room$ 43.29$ 44.97$
51.70$ 74.11$ 105.48Plus: Direct Costs per room
nightKitchenware replacement/repair$ 2.00$
3.00Complimentary toiletries$ 2.00$ 2.00$ 2.00$ 3.00$
4.00Complimentary coffee and tea$ 3.00$ 3.00$ 3.00$
5.00$ 8.00Direct Costs TotalKitchenware replacement/repair$
- 0$ - 0$ - 0$ 29,200$ 43,800$ 73,000Complimentary
toiletries$ 29,200$ 29,200$ 29,200$ 43,800$ 58,400$
189,800Complimentary coffee and tea$ 43,800$ 43,800$
43,800$ 73,000$ 116,800$ 321,200Total Direct costs$
73,000$ 73,000$ 73,000$ 146,000$ 219,000$
584,000Total Cost for Each Product$ 705,039$ 3,150,775$
276,797$ 362,399$ 526,990$ 5,022,000Total Cost per
occupied room$ 48.290$ 46.039$ 70.217$ 124.109$
180.476
&A
Page &P
_1222081831.xls
DataResourcesPer YearFacilities Cost - Utilities$
210,000Other Facilities
CostsDepreciation800,000Tax500,000Interest600,000Total$
1,900,000General and
AdministrativeAccounting165,000General
Administration155,000Purchasing and HR88,000Total$
408,000Hotel
OperationsWages1,500,000Supplies180,000Equipment and
repair240,000Total$ 1,920,000Resources to
ActivitiesResourcesActivity-
consumptionActivitiesUtilitiesOther FacilitiesGen and
AdmOperationsCost DriverHousekeeping5%5%20%square

13. feetLaundry10%10%10%per person nightGrounds and
Pool40%20%10%per roomRegistration15%20%per room
nightBreakfast room10%15%10%per person
nightAdministration5%20%0%per room
nightSecurity5%10%10%per roomRoom repair and
maintenance10%20%20%square
feetUtilities100%0%0%0%square
feetTotal100%100%100%100%Activities to Cost ObjectsCost
ObjectsActivitiesOceanfrontOceanviewPool Side1 Room Suite2
Room SuiteDriverHousekeepingsquare feetLaundryper person
nightGrounds and Poolper roomRegistrationper room
nightBreakfast roomper person nightAdministrationper room
nightSecurityper roomRoom Repair and maintenancesquare
feetUtilitiessquare feetExternal Units (Direct
Costs)OceanfrontOceanviewPool Side1 Room Suite2 Room
SuiteKitchenware replacement/repair$ 2.00$
3.00Complimentary toiletries$ 2.00$ 2.00$ 2.00$ 3.00$
4.00Complimentary coffee and tea$ 3.00$ 3.00$ 3.00$
5.00$ 8.00AverageAverageRoom sizeNo. of
RoomsOccupancy%Persons/Rm(sq
ft)Oceanfront5075%3300Oceanview25075%3300Pool
Side1875%3300One Bedroom Suite1675%4500Two Bedroom
Suite1675%6900350
Crystal Coast Ocean ResortCrystal Coast Ocean ResortOcean
frontOcean viewPool Side1 Room Suite2 Room
SuiteTotalNumber of Rooms50250181616350Average
Occupancy80%75%60%50%50%75%Total Room
nights14,60068,4383,9422,9202,92092,820Average person per
room night33346Total Persons per room
type43,800205,31311,82611,68017,520290,139Room size
(square feet)300300300500900Total square feet for room
type15,00075,0005,4008,00014,400117,800First Stage
Allocation: Allocate Resources to
ActivitiesTotalUtilitiesFacilitiesAdminOperationsAssigned$
210,000$ 1,900,000$ 408,000$ 1,920,000$ 4,438,000First:
Resource Consumption

14. DriversUtilitiesFacilitiesAdminOperationsACTIVITIESHouseke
eping5%5%20%Laundry10%10%10%Grounds and
Pool40%20%10%Registration15%0%20%Breakfast
room10%15%10%Administration5%20%0%Security5%10%10%
Room repair and
maintenance10%20%20%Utilities100%0%0%0%Total100%100
%100%100%Second: Allocate Resources to Activities Using
Resource Consumption
DriversUtilitiesFacilitiesAdminOperationsTotalActivity-
consumptionACTIVITIESCost DriverHousekeeping$ 95,000$
20,400$ 384,000$ 499,400square
feetLaundry190,00040,800192,000422,800per occupantGrounds
and Pool760,00081,600192,0001,033,600per
roomRegistration285,000- 0384,000669,000per room
nightBreakfast room190,00061,200192,000443,200per
occupantAdministration95,00081,600- 0176,600per room
nightSecurity95,00040,800192,000327,800per roomRoom repair
and maintenance190,00081,600384,000655,600square
feetshould this be determined by occupancy?Utilities$
210,000- 0- 0- 0210,000square feetas above$ 210,000$
1,900,000$ 408,000$ 1,920,000$ 4,438,000Second Stage
Allocation: Allocate Activity Costs to Room TypeCost Driver
Percentage of Total for each Room TypeTotalTotal
Occupants15.10%70.76%4.08%4.03%6.04%100.00%Room size,
all rooms (sq
ft)12.73%63.67%4.58%6.79%12.22%100.00%Total Room
nights15.73%73.73%4.25%3.15%3.15%100.00%Total number
of rooms14.29%71.43%5.14%4.57%4.57%100.00%Second:
Allocate Activity Costs to Room
TypeACTIVITIESOceanfrontOceanviewPool Side1 Room Suite2
Room
SuiteTotalcheck…Housekeeping63,591317,95422,89333,91561,
047$
499,400499,400Laundry63,827299,18917,23317,02125,531422,
800422,800Grounds and
Pool147,657738,28653,15747,25047,2501,033,6001,033,600Reg

15. istration105,230493,26628,41221,04621,046669,000669,000Bre
akfast
room66,907313,62418,06517,84226,763443,200443,200Adminis
tration27,778130,2107,5005,5565,556176,600176,600Security4
6,829234,14316,85814,98514,985327,800327,800Room repair
and
maintenance83,480417,40230,05344,52380,141655,600655,600
Utilities26,740133,7019,62614,26125,671210,000210,000TOTA
L$ 632,039$ 3,077,775$ 203,797$ 216,399$ 307,990$
4,438,0004,438,000Cost per occupied room$ 43.29$ 44.97$
51.70$ 74.11$ 105.48Plus: Direct Costs per room
nightKitchenware replacement/repair$ 2.00$
3.00Complimentary toiletries$ 2.00$ 2.00$ 2.00$ 3.00$
4.00Complimentary coffee and tea$ 3.00$ 3.00$ 3.00$
5.00$ 8.00Direct Costs TotalKitchenware replacement/repair$
- 0$ - 0$ - 0$ 29,200$ 43,800$ 73,000Complimentary
toiletries$ 29,200$ 29,200$ 29,200$ 43,800$ 58,400$
189,800Complimentary coffee and tea$ 43,800$ 43,800$
43,800$ 73,000$ 116,800$ 321,200Total Direct costs$
73,000$ 73,000$ 73,000$ 146,000$ 219,000$
584,000Total Cost for Each Product$ 705,039$ 3,150,775$
276,797$ 362,399$ 526,990$ 5,022,000Total Cost per
occupied room$ 48.290$ 46.039$ 70.217$ 124.109$
180.476
&A
Page &P
Pre-Calculus Homework
Multiple Choice: Type your answer choice in the blank next to
each question number.
_____1.

16. Find the indicated sum.
A. 2
B. 54
C. 46
D. -54

17. _____2.
Graph the ellipse and locate the foci.
A.
foci at (0, 6) and (0, -6)
C.
foci at (, 0) and (-, 0)
B.
foci at ( 5, 0) and (-5, 0)
D.
foci at (0, 5) and (0, -5)
_____3.
Solve the system by the substitution method.
2y - x = 5
x2 + y2 - 25 = 0
A.
B.
C. {( 5, 0), ( -5, 0), ( 3, 4)}
D. {( -5, 0), ( 3, 4)}

18. _____4.
Graph the function. Then use your graph to find the indicated
limit.
f(x) = 5x - 3, f(x)
A. 5
B. 25
C. 2
D. 22
_____5.
Use Gaussian elimination to find the complete solution to the
system of equations, or state that none exists.
4x - y + 3z = 12
x + 4y + 6z = -32
5x + 3y + 9z = 20
A. {(8, -7, -2)}
B. {(-8, -7, 9)}
C. ∅
D. {(2, -7, -1)}
_____6.
Solve the system of equations using matrices. Use Gaussian
elimination with back-substitution.
x + y + z = -5

19. x - y + 3z = -1
4x + y + z = -2
A. {( 1, -4, -2)}
B. {( -2, 1, -4)}
C. {( 1, -2, -4)}
D. {( -2, -4, 1)}
_____7.
A woman works out by running and swimming. When she runs,
she burns 7 calories per minute. When she swims, she burns 8
calories per minute. She wants to burn at least 336 calories in
her workout. Graph an inequality that describes the situation.
Let x represent the number of minutes running and y the number
of minutes swimming. Because x and y must be positive, limit
the graph to quadrant I only.
A.
C.
B.
D.

20. Short Answer Questions: Type your answer below each
question. Show your work.
8
A statement Sn about the positive integers is given. Write
statements S1, S2, and S3, and show that each of these
statements is true.
Sn: 12 + 42 + 72 + . . . + (3n - 2)2 =
9

21. A statement Sn about the positive integers is given. Write
statements Sk and Sk+1, simplifying Sk+1 completely.
Sn: 1 ∙ 2 + 2 ∙ 3 + 3 ∙ 4 + . . . + n(n + 1) = [n(n + 1)(n + 2)]/3
10
Joely's Tea Shop, a store that specializes in tea blends, has
available 45 pounds of A grade tea and 70 pounds of B grade
tea. These will be blended into 1 pound packages as follows: A
breakfast blend that contains one third of a pound of A grade
tea and two thirds of a pound of B grade tea and an afternoon
tea that contains one half pound of A grade tea and one half
pound of B grade tea. If Joely makes a profit of $1.50 on each
pound of the breakfast blend and $2.00 profit on each pound of
the afternoon blend, how many pounds of each blend should she
make to maximize profits? What is the maximum profit?
11
Your computer supply store sells two types of laser printers.
The first type, A, has a cost of $86 and you make a $45 profit
on each one. The second type, B, has a cost of $130 and you
make a $35 profit on each one. You expect to sell at least 100
laser printers this month and you need to make at least $3850
profit on them. How many of what type of printer should you

22. order if you want to minimize your cost?
12
A statement Sn about the positive integers is given. Write
statements S1, S2, and S3, and show that each of these
statements is true.
Sn: 2 + 5 + 8 + . . . + ( 3n - 1) = n(1 + 3n)/2
13
Use mathematical induction to prove that the statement is true
for every positive integer n.
2 is a factor of n2 - n + 2

23. 14
A statement Sn about the positive integers is given. Write
statements S1, S2, and S3, and show that each of these
statements is true.
Sn: 2 is a factor of n2 + 7n
15
(i.) f(x)
(ii.) f(x)
(iii.) What can you conclude about f(x)? How is this shown by
the graph?
(iv.) What aspect of costs of renting a car causes the graph to
jump vertically by the same amount at its discontinuities?
16
Use mathematical induction to prove that the statement is true

24. for every positive integer n.
8 + 16 + 24 + . . . + 8n = 4n(n + 1)
17
The following piecewise function gives the tax owed, T(x), by a
single taxpayer on a taxable income of x dollars.
T(x) =
(i) Determine whether T is continuous at 6061.
(ii) Determine whether T is continuous at 32,473.
(iii) If T had discontinuities, use one of these discontinuities to
describe a situation where it might be advantageous to earn less
money in taxable income.

25. 18
A statement Sn about the positive integers is given. Write
statements Sk and Sk+1, simplifying Sk+1 completely.
Sn: 1 + 4 + 7 + . . . + (3n - 2) = n(3n - 1)/2
19
An artist is creating a mosaic that cannot be larger than the
space allotted which is 4 feet tall and 6 feet wide. The mosaic
must be at least 3 feet tall and 5 feet wide. The tiles in the
mosaic have words written on them and the artist wants the
words to all be horizontal in the final mosaic. The word tiles
come in two sizes: The smaller tiles are 4 inches tall and 4
inches wide, while the large tiles are 6 inches tall and 12 inches
wide. If the small tiles cost $3.50 each and the larger tiles cost
$4.50 each, how many of each should be used to minimize the
cost? What is the minimum cost?
20
The Fiedler family has up to $130,000 to invest. They decide

26. that they want to have at least $40,000 invested in stable bonds
yielding 5.5% and that no more than $60,000 should be invested
in more volatile bonds yielding 11%. How much should they
invest in each type of bond to maximize income if the amount in
the stable bond should not exceed the amount in the more
volatile bond? What is the maximum income?
1