Part A

You are the manager of a small bed and breakfast owned by Marino Enterprises. Comfy Inn is located in country Victoria and was purchased by the company two years ago when the long term owners decided to sell. The B&B was sentimental to John Marino and Betsy Smith as they used to stay there in their younger days. When it came onto the market they snapped it up.

Some background on the B&B they are a small luxury homestay property that offers seclusion, privacy and romance for an adults only stay. There are three cabins onsite; each fully contained. They provide a full breakfast in the main house and a full bar that is open for drinks and canaps from 4pm 6pm on Friday, Saturday and Sunday afternoons. The bar is open at other times for snacks, coffee, tea, smoothies, soft drinks and alcohol purchases.

Marino Enterprises looks after the property grounds and the managers wage. Everything else is the responsibility of the manager who resides onsite in the main house. Your partner is employed as the short order cook and you pay a casual cleaner. As part of the onsite managers role, you and your partner complete the general housekeeping duties when it is quiet.

It is budget preparation time and Betsy has asked you to meet with her to discuss the details.

Betsy has provided you with last years actual revenue received, broken down into accommodation, food and beverages.

REVENUE BUDGET ACTUAL for 2015-2016 Comfy Inn B&B
	LAST YEAR
	Accommodation	Food	Beverages	TOTAL
July	3,000	1,600	1,560	6,160
August	2,800	1,800	1,600	6,200
September	2,800	1,800	1,900	6,500
October	3,600	2,400	1,800	7,800
November	3,800	3,000	1,960	8,760
December	6,000	3,800	1,700	11,500
January	8,800	3,800	1,600	14,200
February	8,800	4,000	1,600	14,400
March	3,800	3,400	1,400	8,600
April	3,600	2,600	1,200	7,400
May	3,400	2,400	1,400	7,200
June	3,200	1,800	1,500	6,500
TOTAL	$53,600	$32,400	$19,220	$105,220

1. You will now meet with Betsy. She will provide you with the instructions for preparing your budget and allocating costs.

You will be required to actively participate in the meeting and take notes on the detail provide. Have this assessment work sheet with you to record the details and be prepared to ask questions to clarify the information provided.

Your assessor will give you details on when this meeting will be held.

In the meeting, you will need to confirm (take notes as required) the following:

1. What budget you are responsible for.
2. The increases Betsy has directed you to include into the projected income budget for the next year.

• Accommodation
• Food prices
• Beverage prices.

3. Betsy will also give you some extra considerations during your meeting. Make note of them: