TOPIC 5-PERFORMANCE MEASUREMENT IN HOTELS (10 marks) Question One The following

Question

TOPIC 5-PERFORMANCE MEASUREMENT IN HOTELS (10 marks) Question One The following August and September ntormation has been extracted from a hoter's food department for the months September ? August SR. Guests S.R Guests Departmental S.R. Divisions Room service Dining room Bar-Lounge Coffee shop Banquets TOTALS $22,600927 $18,000 756 4,628 95,500 3,765 637 48,7008,604 198,600 668 211500 6805 5,500 846 53.400 9,709 4,100 Departmental Divisions Cost of sales Wages & salaries expense Employee benefits expense Linen expense China expense $136.200 107,900 14,000 6,400 10,600 9,800 19 200 $304.100 $127,800 101,500 14,500 6,000 9,800 9.400 17600 $286.600 Supplies expense Other expense TOTAL OPERATING EXPENSES DEPARTMENTAL OPERATING | 4,500 $91,200 INCOME Required: A. For each sales revenue division, caiculate the average income per guest for August and September B. Calculate the average cost per guest for each month and the total average per guest for each mont C. Determine the departmental operating income per guest for each month.

Explanation / Answer

A CALCULATION OF AVERAGE INCOME PER GUEST AUGUST SEPTEMBER A B C=A/B D E F=D/E Revenue Division: Revenue Number of Average Income Revenue Number of Average Income Guests per guest Guests per guest Room Service $22,600 927 $24.38 $18,000 756 $23.81 Dining Room $118,500 4628 $25.61 $95,500 3765 $25.37 Bar Lounge $5,500 846 $6.50 $4,100 637 $6.44 Coffee Shop $53,400 9709 $5.50 $48,700 8604 $5.66 Banquests $198,600 6687 $29.70 $211,500 6805 $31.08 Total $398,600           22,797 $17.48 $377,800          20,567 $18.37 AUGUST SEPTEMBER Total A Total Department Revenue $398,600 $377,800 $776,400 B Total number of guests        22,797           20,567 $43,364 C=A/B Average total Income per guest $17.48 $18.37 $17.90 B. CALCULATION OF AVERAGE COST PER GUEST D Total Operating expenses $304,100 $286,600 $590,700 E Number of guests        22,797           20,567 $43,364 F=D/E Average Cost per guest $      13.34 $         13.93 $                  13.62 C CALCULATION OF DEPARTMENTAL OPERATING INCOME PER GUEST G Departmental Operating Income $94,500 $91,200 H Number of guests        22,797           20,567 I=G/H Departmental Operating Income per guest $         4.15 $           4.43

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.