A hotel has three types of rooms , viz, A, B and C. You are to suggest what rent should be charged for each of rooms on the basis of the following information: (i) The rent of B type rooms is to be fixed as 1%times of the C type rooms and that of A type (ii) (iii) rooms as twice of the C type rooms. There are 20 A type rooms, 30 B type rooms and 100 C type rooms in the hotel Normally 60% of A type rooms, 80% of B type rooms and 90% of C type rooms are occupied in summer; and in winter 20% of A type rooms, 20% of B type rooms and 50% of C type rooms are occupied. (iv) Actual expenses are as follows: (a) Staff salary: $ 2,20,000 per annum. (b) Room attendants' salary (when occupied): Room Type Summer Winter A $4.00 per day $6.00 per day $3.00 per day $ 4.50 per day B C. $ 2.00 per day $3.00 per day (c) Lighting per month if occupied for full month for both summer and winter : A type room : $80.00; B type room :$ 60.00; and C type room : $40.00. (d) Power per month if occupied for full month for both summer and winter : A type room $ 40.00; B type room :$ 30.00; and C type room :$ 20.00. (e) Repairs and maintenance : $ 42,000 per annum. (f) Decoration : $ 50,000 per annum. (g) Sundry expenses : $ 76,550 per annum. (h) Depreciation on : -Building @ 5%; cost of building is $ 14 lakhs. -Furniture @ 10%; cost of furniture is $ 3 lakhs. (V) Summer may be assumed for 7 months and winter for 5 months in a year. Normal a month may (vi) Profit on cost is 25% ?
A hotel has three types of rooms , viz, A, B and C. You are to suggest what rent should be charged for each of rooms on the basis of the following information: (i) The rent of B type rooms is to be fixed as 1%times of the C type rooms and that of A type (ii) (iii) rooms as twice of the C type rooms. There are 20 A type rooms, 30 B type rooms and 100 C type rooms in the hotel Normally 60% of A type rooms, 80% of B type rooms and 90% of C type rooms are occupied in summer; and in winter 20% of A type rooms, 20% of B type rooms and 50% of C type rooms are occupied. (iv) Actual expenses are as follows: (a) Staff salary: $ 2,20,000 per annum. (b) Room attendants' salary (when occupied): Room Type Summer Winter A $4.00 per day $6.00 per day $3.00 per day $ 4.50 per day B C. $ 2.00 per day $3.00 per day (c) Lighting per month if occupied for full month for both summer and winter : A type room : $80.00; B type room :$ 60.00; and C type room : $40.00. (d) Power per month if occupied for full month for both summer and winter : A type room $ 40.00; B type room :$ 30.00; and C type room :$ 20.00. (e) Repairs and maintenance : $ 42,000 per annum. (f) Decoration : $ 50,000 per annum. (g) Sundry expenses : $ 76,550 per annum. (h) Depreciation on : -Building @ 5%; cost of building is $ 14 lakhs. -Furniture @ 10%; cost of furniture is $ 3 lakhs. (V) Summer may be assumed for 7 months and winter for 5 months in a year. Normal a month may (vi) Profit on cost is 25% ?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A hotel has three types of rooms , viz, A, B and C. You are to suggest what rent should be charged
for each of rooms on the basis of the following information:
(i)
The rent of B type rooms is to be fixed as 1%times of the C type rooms and that of A type
(ii)
(iii)
rooms as twice of the C type rooms.
There are 20 A type rooms, 30 B type rooms and 100 C type rooms in the hotel
Normally 60% of A type rooms, 80% of B type rooms and 90% of C type rooms are
occupied in summer; and in winter 20% of A type rooms, 20% of B type rooms and 50% of
C type rooms are occupied.
(iv)
Actual expenses are as follows:
(a) Staff salary: $ 2,20,000 per annum.
(b) Room attendants' salary (when occupied):
Room Type
Summer
Winter
A
$4.00 per day
$6.00 per day
$3.00 per day
$ 4.50 per day
B
$ 2.00 per day
$3.00 per day
C.
(c) Lighting per month if occupied for full month for both summer and winter :
A type room : $80.00; B type room :$ 60.00; and C type room : $40.00.
(d) Power per month if occupied for full month for both summer and winter :
A type room $ 40.00; B type room : $ 30.00; and C type room :$ 20.00.
(e) Repairs and maintenance : $ 42,000 per annum.
(f) Decoration : $ 50,000 per annum.
(g) Sundry expenses : $ 76,550 per annum.
(h) Depreciation on :
-Building @ 5%; cost of building is $ 14 lakhs.
-Furniture @ 10%; cost of furniture is $ 3 lakhs.
(V)
Summer may be assumed for 7 months and winter for 5 months in a year. Normal a month
may
(vi)
Profit on cost is 25% ?
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