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A 155 room hotel forecasts its average room rate to $90.00 for the next year at 65% occupancy. The rooms department has a fixed wage
A 155 room hotel forecasts its average room rate to $90.00 for the next year at 65% occupancy. The rooms department has a fixed wage cost of $160,000. Variable wage cost for housekeeping is $14.00 per hour and it takes one hour to clean a room. Benefits are 20% of total wages. Linen, laundry, supplies, and other direct costs are $4.00 per occupied room per day. The hotel has a 60-seat, restaurant. Breakfast average guest check is $ 28.00 and is open 5 days a week with a .75 seat turnover. The restaurant is closed at lunch. The average dinner check is $42.00 and there is a 2.0 seat turnover for dinner and they are open 6 nights a week for dinner. The restaurant is open 52 weeks a year. Beverage sales are 10% of breakfast and dinner food sales. Direct costs for the restaurant are 70% of total restaurant sales revenue. Indirect costs for the restaurant are estimated at $600,000 next year of total restaurant sales revenue. Find dinner's revenue
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