1. You will need to create an Excel Spreadsheet using the information provided in the case. You will need to create additional columns for the soft brand and the core brand. The numbers will change based on your occupancy and ADR changes.
2. Use the numbers already listed for Food & Beverage and Other Operating Departments for soft and core brands. Your percentage numbers will change because you are changing room revenue.
3. Systems, Renovations, and Uniforms are capital expenses. When you have determined their overall cost you will divide systems and renovations by 10. This number is added to depreciation and amorization. Uniforms you will divide by 5 and will also add the this number to depreciation and amorization.
4. When calculating undistributed operating expenses for the soft and core brands you will multiply total operating revenue by the percentage listed in the first column.
5. Net Profit is the goal. Maybe you will base your decision on which has the highest net profit.
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