Contributory Income Practice Question You have recently been hired as the General Manager at The Fairmont Hotel downtown. The Hotel includes Rooms, Food and Bar departments. 9) Fill in the percentages and missing dollar values to determine the Contributory Income. b ) Allocate the indirect costs to the three departments based on the percentage of their sales for Admin/General and Marketing and the remaining indirect costs based on percentage of square footage. Determine operating income for each department. c) What are 2 major challenges that are within Management's control, and describe why management must look further into each? For each challenge described above, discuss 2 potential causes and 2 potential solutions that management can immediately implement to overcome each challenge. DIRECT ROOMS $ % FOOD $ % BAR S % TOTAL EXPENSES Sales 1,655,632.00 921.856.00 403,312.00 Cost of Sales 591,140.16 239.682.56 165.3517 92 Wages 311, 126.40 248.901.12 72.596.16 Other Direct 77,781.60 82,967.04 14.364.32 Expenses Contributory Income INDIRECT ROOMS $ % FOOD $ % BAR $ TOTAL EXPENSE Admin/General Marketing Utilities Property Mice Total Indirect Costs Operating Income Indirect Expenses: Square Footage Admin/General $118,800 Rooms 10,000 sq. ft. Marketing $200,000 Food 8,000 sq. ft. Utilities $205,000 Bar 2,000 sq. ft. Property Mtce $160,000 Total Square Footage