Calculate the actual and budget profit margin for each hotel department (remember profit margins are percentages). Round to the nearest tenth of a percent ex: 1.1%. Be sure to include the % symbol in your answers.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
![Calculate the actual and budget profit margin for each hotel department (remember profit margins
are percentages). Round to the nearest tenth of a percent ex: 1.1%. Be sure to include the % symbol
in your answers.
Room
Revenues
Restaurant
Revenues
Beverage
Revenues
Catering
Revenues
Total
Hotel
Revenues
Room
Profit
Actual
$1,250,000
215,000
Total
Hotel
Profit
Beverage
Profit
Catering
Profit
75,000
Restaurant
Profit
480,000
$2,020,000
$960,000
18,000
22,000
170,000
Profit Margin
$1,170,000
[ Select]
[Select]
[ Select ]
Select]
| Select]
V
V
<
Budget
$1,200,000
225,000
80,000
450,000
$1,955,000
$910,000
20,000
25,000
160,000
Profit Margin
[ Select]
[Select]
[ Select]
| Select]
$1,115,000 Select]
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![Calculate the retention/flow-through in dollars and percent:
Actual retention/flow-through in dollars: [Select]
Actual retention/flow-though in percent:
[Select]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F75575e6b-0232-49e0-b34d-4bc55fc248a8%2Fb98eb2ac-26f6-4c90-be10-38705e064e73%2Fvpa595x_processed.jpeg&w=3840&q=75)
Ratio analysis is a powerful tool used by businesses, investors, and financial analysts to evaluate the financial health of an organization. Financial ratios are calculated by dividing one financial metric by another to provide a measure of the relationship between the two metrics.
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