The Carlton Hotel had a good October. Sales were up over the previous October.
That's good, but Santi Phita, the hotel’s general manager, wants to know more about how the hotel performed with regard to flow-through. Using the following income statement, answer his questions.

THE CARLTON HOTEL Income Statements For October 2009 and 2010 October October Last This Year Year 2009 % 2010 %
Revenue Rooms 430,000 78.90% 465,000 79.76%
Non-Rooms 115,000 21.10% 118,000 20.24%
Total Revenue ce 100.00% 100.00%
Operated Department Expenses Rooms 87,000 15.96% 97,500 16.72%
Non-Rooms 127,500 23.39% 123,000 21.10%
Total Operated Department Expenses 214,500 39.36% 220,500 37.82%
Total Operated Department Income 330,500 60.64% 362,500 62.18%
Total Undistributed Operating Expenses 168,500 30.92% 177,950 30.52%
Rent, Property Taxes, and Insurance 1452110 2.61% 15,100 2.59%
Depreciation and Amortization 10,925 2.00% 11,500 1.97%
Net Operating Income 136,865 25.11% 157,950 27.09%
Interest 9,800 1.80% 10,100 1.73%
Income Before Income Taxes 127,065 23.31% 147,850 25.36%
Income Taxes 64,896 11.91% 67,104 11.51%
Net Income 62,169 11.41% 80,746 13.85%
Flow-Through

a. What were the total revenues in October 2009 and October 2010?

b. What was the GOP in dollars in October 2009 and October 2010?

c. What was the percentage of GOP to total revenues in October 2009 and October 2010?

d. What was the flow-through percentage achieved by Santi’s hotel? What is your assessment of that percentage?