1. Below is a hotel's operating statement for the month of February. Complete the P&L below using vertical analysis. (20 Marks)

			Difference
	Forecast ($)	Actual ($)	$	%
REVENUE
Rooms	784,000	951,000
Food and Beverage	280,000	210,000
Other Operated Departments	33,600	34,500
Rentals and Other Income	22,400	21,750
Total Revenue	1,120,000	1,217,250
DEPARTMENTAL EXPENSES
Rooms	235,200	266,250
Food and Beverage	210,000	174,200
Other Operated Departments	20,250	19,850
Total Departmental Expenses	465,450	460,300
TOTAL DEPARTMENTAL INCOME	654,550	756,950
UNDISTRIBUTED OPERATING EXPENSES
Administrative and General	100,800	102,450
Sales and Marketing	78,400	77,850
Property Operation and Maintenance	56,000	61,250
Utilities	44,800	45,700
Total Undistributed Expenses	280,000	287,250
GROSS OPERATING PROFIT	374,550	469,700
MANAGEMENT FEES	56,000	60,850
INCOME BEFORE FIXED CHARGES	318,550	408,850
FIXED CHARGES
Rent	12,000	12,000
Property and Other Taxes	24,000	24,000
Insurance	20,000	20,000
Total Fixed Charges	56,000	56,000
NET OPERATING INCOME	262,550	352,850
LESS: REPLACEMENT RESERVES	120,000	120,000
ADJUSTED NET OPERATING INCOME	142,550	232,850

1. What would most likely explain why the hotels' rooms expense was higher than the original forecast?
2. What would most likely explain why the hotel's food and beverage expense was lower than the original forecast?