Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What is the operating income? For your answer. Do not use dollar signs, nor periods nor commas. Do not use decimals. i.e. = 123456789 A

image text in transcribed
What is the operating income? For your answer. Do not use dollar signs, nor periods nor commas. Do not use decimals. i.e. = 123456789 A 155 room hotel forecasts its average room rate to $90.00 for the next year at 65% occupancy. The rooms department has a fixed wage cost of $160,000. Variable wage cost for housekeeping is $14.00 per hour and it takes one hour to clean a room. Benefits are 20% of total wages. Linen, laundry, supplies, and other direct costs are $4.00 per occupied room per day The hotel has a 60-seat, restaurant. Breakfast average guest check is $28.00 and is open 5 days a week with a .75 seat turnover. The restaurant is closed at lunch. The average dinner check is $42.00 and there is a 2.0 seat turnover for dinner and they are open 6 nights a week for dinner, The restaurant is open 52 weeks a year. Beverage sales are 10% of breakfast and dinner food sales. Direct costs for the restaurant are 70% of total restaurant sales revenue, Indirect costs for the restaurant are estimated at $600.000 next year of total restaurant sales revenue

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Wiley CIA Exam Review Test Bank Part 1 Essentials Of Internal Auditing

Authors: S. Rao Vallabhaneni

1st Edition

1119987237, 978-1119987239

More Books

Students also viewed these Accounting questions

Question

Describe genes and the role they play in behavior.

Answered: 1 week ago