Question

The price per night of a suite at the Baglioni Hotel in Venice is 1896 euros, VAT included. The VAT in Italy is 25%. The hotel gets a return of 10% out of the price VAT included. b) What is the profit value made by the hotel for one

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Answer to a math question The price per night of a suite at the Baglioni Hotel in Venice is 1896 euros, VAT included. The VAT in Italy is 25%. The hotel gets a return of 10% out of the price VAT included. b) What is the profit value made by the hotel for one

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To find the profit value made by the hotel for one night, we need to calculate the cost price first.

Step 1: Calculate the cost price without VAT
The VAT-inclusive price is 1896 euros, and the VAT rate in Italy is 25%. Let's denote the cost price without VAT as CP.

CP = VAT-inclusive price / (1 + VAT rate)
CP = 1896 euros / (1 + 0.25)
CP = 1516.8 euros

Step 2: Calculate the profit value
The hotel gets a return of 10% out of the VAT-inclusive price. Let's denote the profit value as PV.

PV = 10% of VAT-inclusive price
PV = 0.10 * 1896 euros
PV = 189.6 euros

Answer: The profit value made by the hotel for one night is 189.6 euros.

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