Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need the answer as soon as possible Don't answer if you don't know and within 10 minutes 22 A lodging home is being run

I need the answer as soon as possible image text in transcribed

Don't answer if you don't know and within 10 minutes 22 A lodging home is being run in a small hill station with 50 single rooms. The home offers concessional rates during six off-season months in a year. During this period, half of the full-room rent is charged. The management profit margin is targeted at 20% of the room rent. The following are the cost estimates and other details for the year ending 31st March, 2011 (assuming a month to be of 30 days) : (a) Occupancy during the session is 80%, while in the off season is 40% only ; (b) Expenses : Rs. (i) Staff salary (excluding room attendants) 2,75,000 (ii) Repairs to buildings 1,30,500 (iii) Laundry and linen 40,000 (iv) Interior and tapestry 87,500 (v) Sundry expenses 95,400 (c) Annual depreciation is to be provided for buildings at 5% and on furniture and equipments at 15%, on straight line basis; (d) Room attendants are paid Rs. 5 per room day on the basis of occupancy of the rooms in a month ; (e) Monthly lighting charges are Rs. 120 per room, except in four months of winter when it is Rs. 30 per room and this cost is on the basis of full occupancy for a month; and (f) Total investments in the home is Rs. 100 lakh of which Rs. 80 lakh relate to buildings and balance for furniture and equipments. You are required to work out the room rent chargeable per day both during the season and the off season months, on the basis of the foregoing information

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Principles And Issues

Authors: Michael H. Granof, Philip W. Bell

4th Edition

013321852X, 978-0133218527

More Books

Students also viewed these Accounting questions

Question

f. What subspecialties and specializations does the person list?

Answered: 1 week ago

Question

What processes are involved in perceiving?

Answered: 1 week ago