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If the budget for your hotel had 100 rooms, open 300 days a year, with 50% occupancy and an ADR of $80, fixed costs of $750,000 and with a marginal cost per room of $17.50 then a) What would be your budgeted sales revenue. b) If your actual sales revenue was $1,5000,000 what would be the variance in % c) If your ADR as actually $85 would the variance be positive or negative d) If your actual marginal cost was $17.25 would the variance be positive or negative? e) If you actually sold 155,000 rooms would the variance be positive or negative

If the budget for your hotel had 100 rooms, open 300 days a year, with 50% occupancy and an ADR of $80, fixed costs of $750,000 and with a marginal cost per room of $17.50 then a) What would be your budgeted sales revenue. b) If your actual sales revenue was $1,5000,000 what would be the variance in % c) If your ADR as actually $85 would the variance be positive or negative d) If your actual marginal cost was $17.25 would the variance be positive or negative? e) If you actually sold 155,000 rooms would the variance be positive or negative

FINANCIAL ACCOUNTING
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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Question 14 ( If the budget for your hotel had 100 rooms, open 300 days a year, with 50% occupancy and an ADR of $80, fixed costs of $750,000 and with a marginal cost per room of $17.50 then a) What would be your budgeted sales revenue. b) If your actual sales revenue was $1,5000,000 what would be the variance in % c) If your ADR as actually $85 would the variance be positive or negative d) If your actual marginal cost was $17.25 would the variance be positive or negative? e) If you actually sold 155,000 rooms would the variance be positive or negative
Transcribed Image Text:Question 14 ( If the budget for your hotel had 100 rooms, open 300 days a year, with 50% occupancy and an ADR of $80, fixed costs of $750,000 and with a marginal cost per room of $17.50 then a) What would be your budgeted sales revenue. b) If your actual sales revenue was $1,5000,000 what would be the variance in % c) If your ADR as actually $85 would the variance be positive or negative d) If your actual marginal cost was $17.25 would the variance be positive or negative? e) If you actually sold 155,000 rooms would the variance be positive or negative
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