A B C FACT SET 1 See the case study PDF. DELIVERABLES Determine the amount of revenue that was lost due to booking fewer than expected rooms. Assume the actual ADR would have reamined 1 the same had the additional rooms been rented. 2 Determine the incremental reve Determine the incremental revenue that could have been earned on the number of rooms budgeted but not rented, had they been rented at 3 the local comepetitors' ADR for 2017. 4 Determine the total revenue lost by not renting the budgeted number of rooms and not achieving the same ADR as the local competitors. 5 Determine a flexible budget amount based on actual rooms rented for just the Housekeeper and Laundry line of the budget. Prepare a variance analysis comparing the flex budget you prepared in \#4 to the actual results reported on the P\&L. Break the variance analysis into usage and rate components. HINTS / TIPS TO GET STARTED See the "Hours Information" tab for actual hours worked and rates paid by employee. You can use this to determine the actual rate per hour paid to housekeepers. When developing the flex budget, you'll have to consider how many rooms the Head Housekeeper was budgeted to clean. The case study contains all the necessary data available to determine that number. Consider first how many rooms the other housekeepers were budgeted 2 to clean. To determine that, you'll need to use the budgeted hourly rate paid to housekeepers, the expected time to clean the rooms, the 14 total budgeted dollars, and the total budgeted rooms. 3 Assume that the Head Housekeeper was actually able to clean 1 more room than originally budgeted. (1001 rooms) This will allow the math to work out such that the other housekeepers will have cleaned a whole number of rooms instead of having a fractional amount. number of rooms available during the period (capacity). In Table 1: Local and Regional Competitor Sales Data Note: ADR is average daily rate and is measured as total revenue divided by the number of rooms rented (i.c., sales price). Occupancy is measured as rooms rented divided by the total number of rooms available 100 (i.c., capacity utilization). Table 2: 2017 Profit-and-Loss Summary for the Amarillo Property Table 2: 2017 Profit-and-Loss Summary for the Amarillo Property amounts. All monetary values are represented in L.S. dollars. A B C FACT SET 1 See the case study PDF. DELIVERABLES Determine the amount of revenue that was lost due to booking fewer than expected rooms. Assume the actual ADR would have reamined 1 the same had the additional rooms been rented. 2 Determine the incremental reve Determine the incremental revenue that could have been earned on the number of rooms budgeted but not rented, had they been rented at 3 the local comepetitors' ADR for 2017. 4 Determine the total revenue lost by not renting the budgeted number of rooms and not achieving the same ADR as the local competitors. 5 Determine a flexible budget amount based on actual rooms rented for just the Housekeeper and Laundry line of the budget. Prepare a variance analysis comparing the flex budget you prepared in \#4 to the actual results reported on the P\&L. Break the variance analysis into usage and rate components. HINTS / TIPS TO GET STARTED See the "Hours Information" tab for actual hours worked and rates paid by employee. You can use this to determine the actual rate per hour paid to housekeepers. When developing the flex budget, you'll have to consider how many rooms the Head Housekeeper was budgeted to clean. The case study contains all the necessary data available to determine that number. Consider first how many rooms the other housekeepers were budgeted 2 to clean. To determine that, you'll need to use the budgeted hourly rate paid to housekeepers, the expected time to clean the rooms, the 14 total budgeted dollars, and the total budgeted rooms. 3 Assume that the Head Housekeeper was actually able to clean 1 more room than originally budgeted. (1001 rooms) This will allow the math to work out such that the other housekeepers will have cleaned a whole number of rooms instead of having a fractional amount. number of rooms available during the period (capacity). In Table 1: Local and Regional Competitor Sales Data Note: ADR is average daily rate and is measured as total revenue divided by the number of rooms rented (i.c., sales price). Occupancy is measured as rooms rented divided by the total number of rooms available 100 (i.c., capacity utilization). Table 2: 2017 Profit-and-Loss Summary for the Amarillo Property Table 2: 2017 Profit-and-Loss Summary for the Amarillo Property amounts. All monetary values are represented in L.S. dollars
