Brent Smithson, owner of the Lakeland Hotel, requests your assistance with forecasting sales for the first quarter of 20X5. His 200-room hotel's sales during January-March of 20X4 were as follows: January February March Number of Days 31 29 31 Pd. Occ. % 80 78 81 ADR $150 148 152 08INE Room Sales $744,000 669,552 763,344 Brent believes that room sales will increase by one percentage point in each month and that the ADR should increase by $2 over the rate achieved in 20X4. Assume that total revenue consists of room sales and miscellaneous income. Required: 1. Forecast the expected number of room sales (units) for each month. 2. Forecast the room sales for each month. TER 3. If miscellaneous income is 5 percent of total revenue, forecast the miscellaneous income for each month.
Brent Smithson, owner of the Lakeland Hotel, requests your assistance with forecasting sales for the first quarter of 20X5. His 200-room hotel's sales during January-March of 20X4 were as follows: January February March Number of Days 31 29 31 Pd. Occ. % 80 78 81 ADR $150 148 152 08INE Room Sales $744,000 669,552 763,344 Brent believes that room sales will increase by one percentage point in each month and that the ADR should increase by $2 over the rate achieved in 20X4. Assume that total revenue consists of room sales and miscellaneous income. Required: 1. Forecast the expected number of room sales (units) for each month. 2. Forecast the room sales for each month. TER 3. If miscellaneous income is 5 percent of total revenue, forecast the miscellaneous income for each month.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Brent Smithson, owner of the Lakeland Hotel, requests your assistance with forecasting
sales for the first quarter of 20X5. His 200-room hotel's sales during January-March of 20X4
were as follows:
January
February
March
Number of Days
31
29
31
Pd. Occ. %
80
78
81
ADR
$150
148
152
Room Sales
$744,000
669,552
763,344
Brent believes that room sales will increase by one percentage point in each month and that
the ADR should increase by $2 over the rate achieved in 20X4. Assume that total revenue
consists of room sales and miscellaneous income.
Required:
1. Forecast the expected number of room sales (units) for each month.
2. Forecast the room sales for each month.
3. If miscellaneous income is 5 percent of total revenue, forecast the miscellaneous
income for each month.
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