Below is a table containing financial information for Akerley Inn for the 2015 and2016 fiscal year. Use the information in the table to answer the following questions.Note that in 2016, Akerley Inn entered into an agreement with an online servicecompany that allows travelers to book vacant rooms at Akerley Inn at a discountedprice.20162015Room rental revenue$3,000,000$2,800,000Number of rooms available for rent100100Number of nights in the year365365Total nights available (# of rooms x # of nights in the year)36,50036,500Nights booked25,55022,995a) Calculate the Occupancy Rate (Note: Occupancy Rate = Nights booked ÷ Totalnights available)b) Calculate the Revenue per Available Room (Note: Revenue per Available Room =Room rental revenue Total nights available)c) Calculate the Average Daily Rate (Note: Average Daily Rate = Room rental revenue÷ Nights booked)

Occupancy Rate : It refers to the ratio of rented or used space to the total amount of available…

a) Calculate the Occupancy Rate (Note: Occupancy Rate = Nights booked + Total nights available) b) Calculate the Revenue per Available Room (Note: Revenue per Available Room = Room rental revenue Total nights available) c) Calculate the Average Daily Rate (Note: Average Daily Rate = Room rental revenue - Nights booked)

a) Calculate the Occupancy Rate (Note: Occupancy Rate = Nights booked + Total nights available) b) Calculate the Revenue per Available Room (Note: Revenue per Available Room = Room rental revenue Total nights available) c) Calculate the Average Daily Rate (Note: Average Daily Rate = Room rental revenue - Nights booked)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

Below is a table containing financial information for Akerley Inn for the 2015 and
2016 fiscal year. Use the information in the table to answer the following questions.
Note that in 2016, Akerley Inn entered into an agreement with an online service
company that allows travelers to book vacant rooms at Akerley Inn at a discounted
price.
2016
2015
Room rental revenue
$3,000,000
$2,800,000
Number of rooms available for rent
100
100
Number of nights in the year
365
365
Total nights available (# of rooms x # of nights in the year)
36,500
36,500
Nights booked
25,550
22,995
a) Calculate the Occupancy Rate (Note: Occupancy Rate = Nights booked ÷ Total
nights available)
b) Calculate the Revenue per Available Room (Note: Revenue per Available Room =
Room rental revenue Total nights available)
c) Calculate the Average Daily Rate (Note: Average Daily Rate = Room rental revenue
÷ Nights booked)

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