The Selena's Hotel, opens 365 days, consists of an 80 rooms hotel and a 60 seats coffee shop. Tamika, the Managing Director, provides you with the following information: Of the 80 rooms 60 are doubles and 20 are singles The doubles are sold for $180 each and the singles are sold for $90 ii. Forecast occupancy is 84% for doubles and 78% for singles 1. The average occupancy per room is 1.8 (only one person stays in a single room and two persons stay in a double room) 40% of those guests staying in the double rooms and 20% of the guest staying in the single rooms have breakfast in the coffee shop. The average check is $5.80. (There is no walk-in business for the coffee shop). . The lunch and dinner have seat turnover and average checks as shown below: Days Mon-Fri Lunch Dinner Tumever Av. C. Tumover Av. Ck 1.25 $5.20 10 $10.20 05 7.50 1.0 12.50 1.5 5 15.00 Sun vii. The first day of the year for which you are to prepare the budget is a Monday vii. The food cost percentage is estimated to be 35% i. The labour cost percentages are as follows: Other direct operated expenses include: Rooms: 10% Food: 12% * Other direct operated expenses include: Rooms: 10% Food: 12% xi. Undistributed operating expenses are as follows: $100,000 of fixed expenses and the remainder is 10% of the total revenue xii. Other fixed costs include the followings: Property taxes $30,000 Depreciation $60,000 Interest $50,000 xii. Selena's Hotel pays tax at a rate for 30% per year. You are required to prepare the: .. Prepare the operating budget for the year, (your answer should be tabulated). [15] b. As a student of management accounting you were asked to prepare a report for management based on the figures in the budget and explain to management how, giving examples, they can improve on the business' profitability. [5] x Other direct operated expenses include: Rooms: 10% Food: 12% xi. Undistributed operating expenses are as follows: $100,000 of fixed expenses and the remainder is 10% of the total revenue xii. Other fixed costs include the followings: Property taxes $30,000 Depreciation $60,000 Interest $50,000 xii. Selena's Hotel pays tax at a rate for 30% per year. You are required to prepare the: a. Prepare the operating budget for the year, (your answer should be tabulated). [15] b. As a student of management accounting you were asked to prepare a report for management based on the figures in the budget and explain to management how, giving examples, they can improve on the business profitability. [5] The Selena's Hotel, opens 365 days, consists of an 80 rooms hotel and a 60 seats coffee shop. Tamika, the Managing Director, provides you with the following information: Of the 80 rooms 60 are doubles and 20 are singles The doubles are sold for $180 each and the singles are sold for $90 ii. Forecast occupancy is 84% for doubles and 78% for singles 1. The average occupancy per room is 1.8 (only one person stays in a single room and two persons stay in a double room) 40% of those guests staying in the double rooms and 20% of the guest staying in the single rooms have breakfast in the coffee shop. The average check is $5.80. (There is no walk-in business for the coffee shop). . The lunch and dinner have seat turnover and average checks as shown below: Days Mon-Fri Lunch Dinner Tumever Av. C. Tumover Av. Ck 1.25 $5.20 10 $10.20 05 7.50 1.0 12.50 1.5 5 15.00 Sun vii. The first day of the year for which you are to prepare the budget is a Monday vii. The food cost percentage is estimated to be 35% i. The labour cost percentages are as follows: Other direct operated expenses include: Rooms: 10% Food: 12% * Other direct operated expenses include: Rooms: 10% Food: 12% xi. Undistributed operating expenses are as follows: $100,000 of fixed expenses and the remainder is 10% of the total revenue xii. Other fixed costs include the followings: Property taxes $30,000 Depreciation $60,000 Interest $50,000 xii. Selena's Hotel pays tax at a rate for 30% per year. You are required to prepare the: .. Prepare the operating budget for the year, (your answer should be tabulated). [15] b. As a student of management accounting you were asked to prepare a report for management based on the figures in the budget and explain to management how, giving examples, they can improve on the business' profitability. [5] x Other direct operated expenses include: Rooms: 10% Food: 12% xi. Undistributed operating expenses are as follows: $100,000 of fixed expenses and the remainder is 10% of the total revenue xii. Other fixed costs include the followings: Property taxes $30,000 Depreciation $60,000 Interest $50,000 xii. Selena's Hotel pays tax at a rate for 30% per year. You are required to prepare the: a. Prepare the operating budget for the year, (your answer should be tabulated). [15] b. As a student of management accounting you were asked to prepare a report for management based on the figures in the budget and explain to management how, giving examples, they can improve on the business profitability. [5]