Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A 165 room hotel forecasts its average room rate to $90.00 for the next year at 65% occupancy. The rooms department has a fixed wage

image text in transcribed
A 165 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 $ 16.00 and is open 5 days a week with a .75 seat turnover. The restaurant is closed at lunch. The average dinner check is $26.00 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. A 165 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 $ 16.00 and is open 5 days a week with a .75 seat turnover. The restaurant is closed at lunch. The average dinner check is $26.00 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

CISA Certified Information Systems Auditor Bundle

Authors: Peter H. Gregory

1st Edition

1260459861, 978-1260459869

More Books

Students also viewed these Accounting questions