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? el 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? el If you actually sold 155,000 rooms would the variance be positive or negative

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Use the information provided below to calculate the following independently: 3.1 Break - even quantity 3.2 Margin of safety (in Rands) 3.3 The selling price per unit that will enable the company to break even 3.4 Total Marginal Income and net Profit/Loss if the sales Volume is 10% less than the budgeted figure. 3.5 The number of units that must be sold to earn a net profit of R811 000, if the selling price increases by R20 per unit and the variable costs increase by 10% Information The following budgeted information was extracted from the budget of Brad Manufacturers: Sales 30000 units Selling price per unit R220 Direct materials cost per unit R30 Direct labour cost per unit R20 Variable manufacturing overheads cost per unit R10 Fixed manufacturing costs R1 800000 Variable cost per unit R40 Fixed marketing and administration costs R600000
15
Sales Forecast and Budget Audio-2-Go, Inc., manufactures MP3 players. Models A-1, A-2, and A-3 are small and light. They are attached to armbands and use flash memory. Models A-4 and A-5 are somewhat larger and use a built- in hard drive; they can be put into fanny packs for use while working out. It is now early January, and Audio-2-Go's budgeting team is finalizing the sales budget for this year. Sales in units and dollars for last year were as follows: Model Number Sold Price Revenue A-1 18,000 $70 $1,260,000 A-2 40,000 85 3,400,000 A-3 58,000 110 6,380,000 A-4 16,000 120 1,920,000 A-5 2,500 200 500,000 < $13,460,000 In looking over the last year's sales figures, Audio-2-Go's sales budgeting team recalled the following: a. Model A-1 costs were rising faster than the price could rise. Preparatory to phasing out this model, Audio-2-Go, Inc., planned to slash advertising for this model and raise its price by 40 percent. The number of units of Model A-1 to be sold was forecast to be 50…
The production cost for a waterproof phone case is $9 per unit and fixed costs are $27,000 per month. How much is the favorable or unfavorable variance if 5,000 units were produced for a total of $71,600? Enter the amount as positive number. (favorable or unfavorable) variance _____?
You are given the following information in respect of a company:Budgeted output 60 000 unitsSelling Price per unit OMR 120Variable Cost per unit OMR 100Total Fixed Costs OMR 200,000Draw a break-even chart showing the breakeven point. If the selling price is reduced to OMR 100 per unit, what will be the new break- even point?
The company just hired a new marketing manager who insists unit sales can be dramatically increased by dropping the selling price from $8 to $7. The marketing manager would like to use the following projections in the budget: Year 2 Quarter Year 3 Quarter Data 1 2 3 4 1 2 Budgeted unit sales 45,000 65,000 105,000 60,000 90,000 100,000 Selling price per unit $7 What are the total expected cash disbursements for raw materials for the year under this revised budget?
A 100-room hotel budgeted an occupancy of 75% and an average room rate of $100 per room for year 2020. Actual occupancy was 50% and average room rate was $90. Assume 365 days in a year. Find the variance in total room revenue, variance in rooms sold and variance in average room rate, and then use the variance analysis matrix to find the constituents in total rooms revenue variance by breaking it up into price variance and quantity variance.
You are given the following data. Calculate the VAC (Variance at Completion) for two scenarios as listed below Project A Budget S400,000 Duration 90 days Status |60 days EV $140,000 PV $150,000 AC $178,000 BAC = 1. Assume future budget estimates do not change ETC = EAC = VAC = 2. Assume future costs continue at the same spending rate ETC = EAC = VAC =
Assume that Samsung is budgeted to operate at 80% of capacity but actually operates at 75% of capacity. What effect will the 5% deviation have on its controllable variance? Its volume variance?
Best Windows plans to sell two different brands of windows-Chad and Musk-and budgets th (Click the icon to view the budgets.) Calculate the breakeven point for Best Windows in terms of (a) the number of units sold and (b) is a ratio of Chad Windows Musk Windows Total 4 1 unit(s) of Musk Windows. Next, calculate the contribution margin of the bundle. Number of Units of Chad Windows and Musk Windows in Each Bundle : 1 That is, we think of Best Windows selling a bundle of Chad Windows Must Windows + Total number of units to break even Contribution Margin per unit for Chad Windows and Musk Windows 200 + Calculate the breakeven point in terms of units. 200 Contribution Margin of the Bundle 800 Determine the formula used to calculate the breakeven point of the bundle. Then, enter the am Fixed costs 165,000 Contribution margin per bundle 1,000 $ 200 1,000 4 = Data table Expected sales Revenues, $650 and $400 per unit Variable costs, $450 and $200 per unit Contribution margin, $200 and $200…
if the hotel reduces all departmental expenses by 10% what would the new breakeven be? The total departmental expenses is 9,146,813 and the total fixed cost is 6,531,552. The CMR is .54 and the new CMR is .59. The total variable cost is 13,369,293. please find the BEP if departmental decreases by 10%?
Carson CPAS specializes in preparing 1040EZ returns for low-income clients. The firm charged $100 per return this year and budgeted $100 per return. Additional information for the firm includes: Actual Budgeted 800 750 $37,500 12,000 Returns processed Variable costs Fixed costs Prepare Carson's static budget and the static budget performance report. Note: Do not use negative signs with any of your answers. Note: Indicate whether the variance is favorable (F) or unfavorable (U) using the drop-down menu in the last column next to the variable amount. Budgeted returns Actual returns Returns processed variance Revenue Variable costs Fixed costs Net income $36,000 12,500 $ $ Actual Results 0 For U $ 0$ Budget Results $ 0$ Variances 0 0 0 0 For U ♦ + >