Complete answers for the 3 questions (requires multiple answers) Book -Managerial Accounting for the Hospitality Industry | 978-0-471-72337-0 ISBN-13: 9780471723370 Author(s): Dopson, Lea R., University of North Texas. Denton, Texas Chapter 6

Apply What You Have Learned 1. Andrea Hayman knows her business, but she often wonders if anyone else really does. Andrea owns and operates a successful catering company. Each catered event she manages is unique. Her company enjoys an excellent reputation because of Andrea's attention to detail and total commitment to customer service. In a good month, Andrea and her staff of 25 employees will serve over 10,000 lunch and dinner meals. Sales last year exceeded $2,500,000. Andrea's company was simply the one that people always called when a large specialty party or event needed to be executed extremely well. The biggest catered event Andrea held last month involved a political fundraiser for the Governor. Her company served3,500 people for dinner at the Fairgrounds, and Andrea's team performed awlessly. Although she was condent that she knew how to operate her business, she wondered about her protability. Were her food production people and bartenders as cost conscious as they should be? Were her servers truly efcient? Were her prots ''reasonable''? These were legitimate questions, and Andrea wanted solid answers. 1. Identify and write out one specic food, one beverage, one labor, and two protability ratios you believe would be critical for Andrea to compute and monitor if she wants to effectively analyze her business success. 2. What would be your reply to Andrea if she asked you how often each of the ve ratios you have suggested should be computed? Why? 3. How could comparative ratio analysis help address Andrea's concerns? What are some data sources Andrea could turn to as she sought answers to her business effectiveness questions? 2. The Food and Beverage department at the Fox Hills Country Club is an important part of the Club's overall prot structure. February food sales were $310,450 and beverage sales were $49,875. Because they represent such signicant costs, Frankie Watson,the Club'sFood and Beverage Director, keeps a careful watch on her food and beverage cost percentages. Using the following information for February that Frankie has recorded, help her calculate the answers to the questions that follow. Given: Beginning Food Inventory $ 5,410 Food Purchases $72,385 Ending Inventory $ 5,772 Transfers ''Out of Kitchen'' $ 922 Transfers ''Into Kitchen'' $ 1,346 Employee Meals $ 1,622 Calculate the following: Beginning Inventory Purchases Food Available for Sale Ending Inventory Cost of Food Consumed Transfers Out Transfers In Employee Meals Cost of Food Sold Food Sales Food Cost % Given: Beginning Beverage Inventory Beverage Purchases Ending Beverage Inventory Transfers ''Out of Bar'' Transfers ''Into Bar'' $ 1,099 $12,588 $ 1,244 $ 1,346 $ 922 Calculate the following: Beginning Inventory Purchases Beverage Available for Sale Ending Inventory Transfers Out Transfers In Cost of Beverage Sold Beverage Sales Beverage Cost % a. What was the amount of Frankie's Cost of Food Consumed in the month of February? b. What was the amount of Frankie's Cost of Food Sold in the month of February? c. What was Frankie's Food Cost % in the month of February? d. What was the amount of Frankie's Cost of Beverage Sold in the month of February? e. What was Frankie's Beverage Cost % in the month of February? 3. Elaine Ware owns her own nonfranchised full-service hotel. Her competition is intense, so Elaine very carefully monitors the nancial performance of her property. Ratios are essential to the management decisions she makes. Use the following information to calculate Elaine's operating ratios. The gures are based on one day's operation. Hotel Total Rooms 225 Rooms Available for Sale 200 Rooms Occupied and Sold 140 Number of Guests 308 Housekeeping Costs $ 2,170 Rooms Revenue $17,500 Total Revenue from Hotel Guests $53,900 Restaurant Total Food Sales $ 2,700 Total Beverage Sales $ 900 Total Sales $ 3,600 Number of Guests (Covers) Sold 180 Number of Seats in the Restaurant 150 Labor Cost $ 1,260 Food: Beginning Inventory Purchases Ending Inventory Transfers Out Transfers In Employee Meals $ 5,000 $ 500 $ 4,565 $ 200 $ 100 $ 25 Beverage: Beginning Inventory Purchases Ending Inventory Transfers Out Transfer In $ 7,000 $ 250 $ 7,188 $ 100 $ 200 Calculate the following: Hotel a. Occupancy Percentage b. Average Daily Rate (ADR) c. RevPAR d. RevPAC e. Housekeeping CPOR Restaurant f. Check Average g. Seat Turnover h. Cost of Food Sold i. Food Cost Percentage j. Cost of Beverage Sold k. Beverage Cost Percentage l. Labor Cost Percentage