Prepare an operating budget for a 100 room motel with a 64% occupancy and $72.00 ADR. It has a 65 seat coffee shop open 7 days per week for all meals, a 75 seat dining room open 6 days per week for lunch and dinner only and a 90 seat cocktail lounge open 310 days per year which serves 20 food orders @ $8.50 per meal per day. Beverage sales are $5,250 per cocktail lounge seat and 15% of the combined lunch/dinner sales in the coffee shop and 25% of the combined lunch/dinner sales in the dining room. Variable costs are 35% for food, 32% for beverages, Note that for every 16 rooms occupied each day one housekeeping shift @ $8.50/hour is required. All variable cost rates and fixed costs are listed in the table. Prepare a contributory income statement for each revenue center and then prepare a consolidated income statement which included undistributed indirect expenses to arrive at EBITDA for the entire business.
Computation of room division revenue
Number of rooms
Occupancy rate
Average room rate
Days open per year
Room sold
Rooms revenue
Computation of room division contributory income
Rooms revenue
Fixed wages
Housekeeping wages
Total wages
Benefits (12% of wages)
Linen (6% of rooms revenue)
Supplies (3% of rooms revenue)
Total rooms cost
Rooms contributory income
Computation of dining room food revenue
		Lunch	Dinner		Total
Check average
Turnover
Days (6 days/week, 52 weeks/yr)
Seats
Total dining room revenue
Computation of coffee shop food revenue
	Breakfast	Lunch	Dinner	Breaks	Total
Check average
Turnover
Days (365/year)
Seats
Total coffee shop revenue
Computation of cocktail lounge food revenue
Check average
Orders per day
Days open per year
Total cocktail lounge food revenue
Computation of contributory income for food
Revenue
Dining room food revenue
Coffee shop food revenue
Cocktail lounge food revenue
Total food revenue
Cost for Food
Food cost 35%
Payroll 45%
Laundry 2%
Supplies 5%
Other costs 2%
Total operating cost
Food contributory income
Computation of beverage revenue
Cocktail lounge seats
$5,250 per cocktail seat
Coffee shop (15% of lunch+dinner)
Dining room (25% of lunch+dinner)
Total beverage revenue
Computation of contributory income for beverage
Beverage revenue
Liquor cost 32%
Payroll 25%
Supplies 5%
Total costs
Beverage contributory income
Overall contributory income statement
Contributory income
Room
Food
Beverage
Total contributory income
Fixed costs
Administrative
Marketing
Utilities
Operations & Maintenance
Insurance
Property taxes
Total fixed costs
EBITDA