# Financial Analysis: Snow Geese Inn

Good Essays
Snow Geese Inn

Last year: Rev = \$30,000 FC = \$27,239 (\$34,739 - \$7,500) VC = \$10.56 per unit (\$30,000 rev/\$85 per room = 353 rooms  \$3,729 VC/353rooms)

Break-even – 85x = 10.56x + 27239 + 0
74.44x = 27239 x = 366 rooms

Max profit – (365 days *6 rooms = 2190 rooms available) (\$85 per room*2190 rooms = \$186150 revenue) R 186150.00 - VC (23126.40) CM 163023.60 - FC (27239.00) Profit \$135,784.60

Last year – R 30000.00 - VC (3727.68) CM 26272.32 - FC (27239.00) Profit (\$966.68)

With Maggie: FC = \$34,739 VC = 10.56 per unit ≤ 294 rooms 40.31 per unit > 295 rooms (Maggie is paid 35% of revenue over \$25,000  25000/85 = 294 rooms)

Break – even – 85x + (85*294) = (10.56*294) + (40.31x) + 34739 44.69x = 12853.64 x = 288 + 294 x = 582

1. Before Maggie began working for Phil and Carol, breakeven for the Snow Geese Inn was 366 rooms. During the year there were revenues of \$30,000, variable costs of \$3,727 and fixed costs of \$27,239, the couple had a loss of \$966.68. The maximum profit that could have been made was \$135,784.60 – this can be found by figuring out maximum capacity and plugging it into the equation (365 days a year times 6 rooms = 2190 rooms available per year).
2. When Maggie started working for Phil and Carol breakeven changed to 582 rooms. Maggie is paid commission of 35% of revenue over \$25,000, which means that when more than 294 rooms are sold she makes a commission and the variable cost of the Inn increases. Occupancy rates are projected to be around 30 – 35%, making it a possibility for the Inn to break-even while having Maggie as an employee (maximum capacity is 2190 rooms, times 30% = 657 rooms). However based on last year’s performance of 353 rooms being sold, it is unlikely that Phil and Carol will be able to sell enough units to break-even.
3. The Inn would be able to break-even with

## You May Also Find These Documents Helpful

• Powerful Essays

Financial Analysis Past Performance: In regards to the past performance of the Westover inn, it is clear to see that the inn has been an underperformer in regards to recording any positive net income. Despite the consistent years in failure to produce a positive income, the trend is clear that progression is being made as each year has shown an increase in profit and revenue. This has much to do with the productive way of reducing expenses and the inn gaining more recognition and consistent…

• 754 Words
• 4 Pages
Powerful Essays
• Good Essays

Mary Oliver’s “Wild Geese” focuses on the beauty of life as well as surviving its everyday challenges and difficulties. It is a perfect mix of both the underlying and the obvious meanings. The poem is in free-verse so punctuations are used sparingly throughout the poem but enough commas are distributed on areas where there should be a slight “pause”; significantly chosen words are placed individually per line. The 1st line “You do not have to be good” (Oliver 1) marks the obvious soulful…

• 341 Words
• 2 Pages
Good Essays
• Better Essays

Cruel nature of Caleb gare Wild Geese is a novel written by Martha Ostenso. The motive of paternal dominance and tyranny imposed by Caleb Gare is clearly felt throughout the whole novel. He is driven by his desire to get more land and therefore more money. Therefore he does not only tyrannize his family, but also his neighbours. Devoting all his life to just one materialistic goal, to acquire as much land as possible, Caleb uses his possessions to show his power and therefore possessions become…

• 2682 Words
• 11 Pages
Better Essays
• Good Essays

Table of contents Executive Summary 4 Introduction 5 Chapter 1 6 Quick scan 6 Problem statement 9 Chapter 2: Swot analysis 10 The companies’ business 10 Target group 10 Suppliers 10 Structure 11 Company culture 11 Competitive advantage 11 Competitive landscape 12 Strenghts 13 Weaknesses 14 Opportunities 14 Threats 15 Confrontation matrix 16 Porter’s five forces 16 Chapter three 18 How big is the target market? 18 What is the customer opinion about hosting…

• 8945 Words
• 36 Pages
Good Essays
• Good Essays

Wisdom of the geese You have undoubtedly seen a flock of geese flying overhead. How the following behaviours of this species provide some insights for organization wishing to achieve performance excellence? http://www.youtube.com/watch?v=Hj86lE2tpP0 o As each bird flaps it’s wings, it creates uplift for the other bird behind. By using a “V” formation, the whole flock adds 71 percent more flying range than if each bird flew alone. Lesson: People who are part of a team and share a common direction…

• 432 Words
• 1 Page
Good Essays
• Good Essays

“Wild Geese,” motivates individuals to join their past with the future in order to bring out the best in themselves. “Wild Geese” first appeared in Oliver’s Dream Work, published in 1986. This poem is one out of forty-five poems in Dream Work that encourages self-awareness. She explores the association between nature and the human mind—how the mind transcends through memories, separating us from society. She contemplates why humans worry when the beauty of nature surrounds us. By using the geese metaphor…

• 1207 Words
• 5 Pages
Good Essays
• Good Essays

Wild Geese This poem [Wild Geese] is an unusual poem. Instead of following the usual guidelines of a poem (ABABAB, AABBAA, Haiku, etc.) it deviates, to the point at which it loses the luster of a song and gains that of a statement. And even though such statement has no rhythm, nor explainable format, our brains are tricked into reading it with a softer voice, similar to the voice one spares for a child’s nursery rhymes. Regardless of how it is presented, Wild Geese is a motivational poem, and that…

• 314 Words
• 2 Pages
Good Essays
• Good Essays

In “No Room at the Inn” Yasmin Alibhai-Brown (2002) argues on how immigrants changed from being in high status in Europe to being discriminated. Yasmin Alibhai-Brown has a bachelor in English literature from Makerere University(Wikipedia, 2014). Also, she has a Master of philosophy degree in English Literature. Also, Alibhai-Brown writings focus on immigration, multiculturalism and diversity. Furthermore, Yasmin wrote several books that has been successful such as the Independent and Who do we think…

• 781 Words
• 4 Pages
Good Essays
• Powerful Essays

Introduction Amber Inn & Suite, Inc. was built in 1979 and is composed of 250 hotels chain empire of which each consisting an average of 120 exquisite guest rooms or suite units. The profits are \$422.6 million and deficits of \$15.7 million. The Amber Inns & Suite have total of 30,000 rooms. The Company’s objective is to cater mainly to professional clienteles that are traveling with fabulous guest rooms at an economical price. Amber Inn & Suites, Inc. is located in areas amid ten western and Rocky…

• 1782 Words
• 8 Pages
Powerful Essays
• Good Essays

From the famous “The Flying Geese Paradigm (FGP)” model, we know that the world economic pattern has been shifting from the developed countries to the developing countries and this phenomenon was prevalent in the history of industrialization and development. In this present time of Globalization, this has become more vivid and frequent as this time has also been witnessing the emergence of Regionalization in case of international economic cooperation in which trade and investment plays a vital role…

• 911 Words
• 4 Pages
Good Essays