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

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.