Skyview

SANTA CLARA UNIVERSITY

LEAVEY COLLEGE OF BUSINESS

DEPARTMENT OF ACCOUNTING

BA122B—STRATEGIC COST MANAGEMENT

FINAL EXAMINATION

Professor William F. O'Brien

Due: December 8, 2009

Team:___________________________________

Instructions:

1. Address ONLY the questions asked. Include the additional question stated below. Think strategically outside the box but limit the text of your answers to 6 pages or less, excluding exhibits and calculations.

2. ADDITIONAL QUESTION #8: What other strategic and tactical issues and related recommendations would you present to the Kachecks?

3. Fully explain all calculations, indicating assumptions as necessary.

4. This assignment is due on December 8, 2009.

5. Each team should submit their own version of the case. No collaboration is permitted.

6. Each team will present their responses to Questions 1, 2, 3, 7 and 8 in class on 12/8/09. Limit your power-point presentation to 8 minutes or less.

Scoring:

Question 1 __________ (15 points)

Question 2 __________ (10 points)

Question 3 __________ (10 points)

Question 4 __________ (15 points)

Question 5 __________ (15 points)

Question 6 __________ (5 points)

Question 7 __________ (15 points)

Question 8 __________ (15 points)

Score __________ (100 points)

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Skyview Manor

This case study is set in 1962 in rural Vermont. The Skyview Manor is an old, but wel/maintained property that has changed ownership several times over the years. It has no restaurant or bar. It is positioned as a mid-price, good quality "destination" resort hotel.

The Skyview Manor is open only 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 state which allows only 120 days of operation per year. Each of the 50 rooms in the east wing rents for $15 for single occupancy or $20 for double occupancy....