Question
The Roof Top Bistro achieved an average daily room rate (ADR) and a unit variable cost (UVC) of $95.00 and $35.00, respectively, in this month.
The Roof Top Bistro achieved an average daily room rate (ADR) and a unit variable cost (UVC) of $95.00 and $35.00, respectively, in this month. Imagine that the building rent is about to expire and the new rent will cause fixed cost (FC) to increase by $37,000 for the next month. Based on this situation, how many more rooms must be sold in order for the management of the Roof Top to cover the increased FC and to still be at breakeven?
Hotel De MontGerch has three different revenue generating departments as rooms, food and beverage (F&B), and convention. The rooms department has acquired total revenue of $460,000 and variable cost (VC) of $100,000. F&B department's total revenue is $210,000 and VC of 40.00% of the department's total revenue. Lastly, the convention department has a VC of $90,000 and it has sold 9,200 chairs with an average selling price of $15.00. Based on the information given, what is the weighted contribution margin ratio (CMRw
) for the entire operations of MontGerch
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