Hotel 1: Fixed cost $40,000, total sales of $198,935, variable costs of $49,996 profit?

To calculate the profit for Hotel 1, we can use the following formula:

\[
\text{Profit} = \text{Total Sales} - (\text{Fixed Costs} + \text{Variable Costs})
\]

Let's plug in the values provided:

- Fixed Costs = $40,000
- Total Sales = $198,935
- Variable Costs = $49,996

\[
\text{Profit} = 198,935 - (40,000 + 49,996)
\]
\[
\text{Profit} = 198,935 - 89,996 = 108,939
\]

**Profit** for Hotel 1 is **$108,939**.

Would you like more details or have any questions? Here are some related questions:

1. How would the profit change if the variable costs increased by 10%?
2. What would be the impact on profit if fixed costs were reduced by $5,000?
3. How does an increase in total sales by 15% affect the profit?
4. What would the breakeven point be for Hotel 1?
5. How could you increase the profit margin for Hotel 1?

**Tip:** Regularly monitoring both fixed and variable costs can help in identifying areas for cost reduction, which directly increases profit.

Learn how to calculate the profit for Hotel 1 using its fixed costs of $40,000, total sales of $198,935, and variable costs of $49,996. This problem involves detailed profit calculation methods including fixed and variable costs analysis.

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