File Home Insert Page Layout Formulas Data Review View Help PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit it's safer to stay in F E77 V : C E F G H 1 J K 1 Case Study L M N 0 P 2 3 You have been asked to help prepare the operating budget for a proposed new 100-room motel, 5 with a 65-seat coffee shop, 75-seat dining room, and 90-seat cocktail lounge. 6 7 The operating budget for the first year will be based on the following information: 8 9 12 Rooms Department: Occupancy is 64% with an average room rate of $72. Fixed wages for bellpeople, front-office employees, and other personnel attached to the rooms 11 department are estimated at $326,900. In addition, for every 16 rooms occupied each day, one housekeeper will be required for an eight-hour shift at a rate of $8.50 an hour. * Staff fringe benefits will be 12% of total wages, 5 Linen and laundry costs will be 6% of total rooms sales revenue. * Supplies and other items will be 3% of total rooms sales revenue. 17 18 Food Department: The dining room is open 6 days a week, 52 weeks a year for lunch and dinner only 1 Lunch seat turnover is 1.5, with an average food check of $8.25. 20 Dinner seat turnover is 1.0, with an average food check of $14.00. 21 The coffee shop is open 7 days a week for all meal periods. z2 Breakfast seat turnover is 1.0, with an average food check of $5.75. z Lunch seat turnover is 1.5 with an average food check of $7.75. 2* Dinner seat turnover is 1.0, with a $9.95 average food check. 25 Coffee shop seat turnover for coffee breaks and snacks is 6.0, with an average check of $1.75. 28 The cocktail lounge serves an estimated 20 food orders per day, with an $8.50 average check. 27 The lounge is closed on Sundays and certain holidays and only operates for 310 days during the year. 28 Total payroll costs, including fringe benefits in the food department, will be 45% of total food sales revenue. 2 Other costs, variable as a percentage of total food sales revenue, follow: 311 Food cost Laundry and linen Supplies Other costs 22 35% 29 5% 2% 39 Case Sheet3 Ready