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Question 2 (9 marks) The Western Hospitality Group has a hotel, dining room and conference centre facility. Financial information is as follows: Hotel Dining Room
Question 2 (9 marks) The Western Hospitality Group has a hotel, dining room and conference centre facility. Financial information is as follows: Hotel Dining Room Conference Centre Capacity 100 rooms 100 seats 200 seats Selling price/unit $185 $39 $135 Material costs/unit $40 (laundry) $10 (food) $13 (refreshments) Other variable costs/unit $10 (cleaning) $12 (labour) $10 (light and heat) Required: a) Prepare a budget that shows the total contribution margin for each of the three facilities. (6 marks) b) Rank the facilities based on the greatest contribution to profitability
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