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Hotel A Hotel B $2,100,000 $1,250,000 Rooms revenue Other departmental revenue Total revenue Total departmental expenses Total undistributed expenses Total expenses Gross operating profit $2,197,120

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Hotel A Hotel B $2,100,000 $1,250,000 Rooms revenue Other departmental revenue Total revenue Total departmental expenses Total undistributed expenses Total expenses Gross operating profit $2,197,120 $1,600,000 $1,376,250 $900,000 Hotel B 200 70% Hotel A Number of rooms 200 Occupancy 73% ADR $92 *Note: number of days per year is 365. Based on RevPAR, hotel A is more profitable than hotel B. $89 O True O False

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