Hospitality Finance - 89937

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  • From: Business, Management
  • Posted on: Wed 22 Apr, 2015
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1. Compute the projected revenue level for July using a four-month moving average and the following sales data January ?$180,000 February?$220,000 March?$230,000 April?$200,000 May?$250,000 June?$280,000 2. A motel has an occupancy rate of 75%, with 260 rooms available per day. At an ARR of $68; forecast room revenue for the month using 30 days. 3. Compute the variable cost per unit and the fixed cost per month for the semi-variable expense based on the information provided using the high-low method Month?Volume?Labor Cost? 1?1500?$280 2?1280?$220 3?2500?$380 4?1750?$310 5?1250?$230 4. If menu prices increase by 5% next year and volume increases by 8% beginning January 1st, forecast sales for the first 6 months Month?Sales?Price Increase?Volume increase = Budget January?35,000 February?38,000 March?44,500 April?32,500 May?48,000 June?46,000 5. Use the weighted average to compute the average room rate from the following information: Rooms?Rate ?Single?45?$65.00 ?Double?55?$85.00 ?Suite?15?$125.00 6. Use the following information Sales = $537,000 Average Guest Check = $18.75 Food Cost Percent = 35.0% IBIT = $150,000 Calculate Break-even point 7. Complete the in/off season analysis for the following information Last Year?In-Season?Off-Season?If Closed ?(12 months)?(9 months)?(3 months)?off-season Sales?$400,000?$300,000 VC?$300,000 CM?$100,000 FC?$ 60,000 IBIT?$ 40,000 8. Use the CVP analysis method to calculate sales revenue required to achieve an IBIT of $75,000 with the following forecast data: Sales Forecast = $373,000 Variable costs = $167,000 Fixed costs = $103,000 Determine sales required to achieve an IBIT objective of $75,000 9. Calculate the payback period for the following project. Use straight-line depreciation. Purchase of equipment?$100,000 Annual Savings?$30,000 Depreciable life of asset?5 years Salvage value?0 10. Use the following information to determine the cause of sales variances: (10 points) Budget?Actual?Variance Room Sales?463,500?516,750 Information from managers budget working papers Rooms:?4,500 Average room rate:?$103.00 Current months statistics from the accounting department Rooms:?5,300 Average room rate:?$97.50 11. Provide a series of flexible budgets giving Sales, Variable Costs, Fixed Costs and Net Income for the year for estimated sales levels of 1000, 1500, and 2000 units; using fixed costs of $3,000 and variable costs per unit of $3.00 assuming a sales price per unit of $5.25 Unit Sales? ?1000?1500?2000 Sales Dollars Variable Costs Fixed Cost _________________________________________________________________ IBIT 12. Calculate the first month’s ending cash balance for the following: Beginning cash balance of $15,000 $200,000 Sales, with 40% paid in cash. Half of the sales on account is paid equally in the month of sale and the next month. Expenses were $120,000 all on credit. 20% paid in the month of purchase and the balance paid the second month.
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