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ABC International Hotel is a 10 story, 350 room hotel situated in Adelaide. The ABC International Hotel's business results for one day in February were:

ABC International Hotel is a 10 story, 350 room hotel situated in Adelaide.

The ABC International Hotel's business results for one day in February were:

Budget Information

F and B revenue budgeted at $12000

Food & Beverage dept. total department costs are 35% of F and B revenue

Room Occupancy budgeted at 95%

ADR set at $140

Rooms Division total department costs are 60% of Room revenue

EBIT is budgeted at 30.02% of total revenue

The budgeted Other (Operating expenses) is 15% of total revenue,

Income Tax paid at 30% of earnings before tax

Actual Results Rooms

  1. Achieved RevPAR of $110.00
  2. Rooms Division COGS were 48% of Room revenue

Actual results F and B

  1. Food & Beverage revenue is $10 000
  2. Food & Beverage dept. COGS were 30% of F and B revenue
  3. Actual Other (Operating expenses) are $9250.

Other information

  • Loan Interest actually paid $2 000
  • Total owners' equity $100 000
  • Total Assets $148 000 Including: Current Assets $65 000 and Non-Current Assets $83 000
  • Total liabilities $48 000 Including: Current liabilities $26 000 and non-Current liabilities $22 000

Rounding instructions

  • All occupied rooms are rounded DOWN

  • All percentage calculations to be rounded to two decimal places

  • All dollar figures round to whole dollars

Complete the missing information

Income Statement

Actual

Budget

Variance

$

%

$

%

$

%

Room revenue

100%

100%

Cost of Goods Sold

60%

Gross Profit

F&B Revenue

10 000

100%

12 000

100%

(2000)

(16.67)

Cost of Goods Sold

35%

Gross Profit

Total Revenue

100%

100%

Total Cost of Goods Sold

Total Gross Profit

Other Operating Expenses

9 250

15%

Earnings Before Interest and Tax

30.02%

Interest

2 000

0%

Earning Before Tax

Income Tax

Net Profit

21.02%

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