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ACC3025 Hospitality Finance




Question;1. Compute the projected revenue level for July using a four-month moving average and the following sales data;January?$180,000;February?$220,000;March?$230,000;April?$200,000;May?$250,000;June?$280,000;2. A motel has an occupancy rate of 75%, with 260 rooms available per;day. At an ARR of $68, forecast room revenue for the month using 30;days.;3. Compute the variable cost per unit and the fixed cost per month for;the semi-variable expense based on the information provided using the;high-low method;Month?Volume?Labor Cost?;1?1500?$280;2?1280?$220;3?2500?$380;4?1750?$310;5?1250?$230;4. If menu prices increase by 5% next year and volume increases by 8%;beginning January 1st, forecast sales for the first 6 months;Month?Sales?Price Increase?Volume increase = Budget;January?35,000;February?38,000;March?44,500;April?32,500;May?48,000;June?46,000;5. Use the weighted average to compute the average room rate from the following information;Rooms?Rate;?Single?45?$65.00;?Double?55?$85.00;?Suite?15?$125.00;6. Use the following information;Sales = $537,000;Average Guest Check = $18.75;Food Cost Percent = 35.0%;IBIT = $150,000;Calculate Break-even point;7. Complete the in/off season analysis for the following information;Last Year?In-Season?Off-Season?If Closed;?(12 months)?(9 months)?(3 months)?off-season;Sales?$400,000?$300,000;VC?$300,000;CM?$100,000;FC?$ 60,000;IBIT?$ 40,000;8. Use the CVP analysis method to calculate sales revenue required to;achieve an IBIT of $75,000 with the following forecast data: Sales;Forecast = $373,000;Variable costs = $167,000;Fixed costs = $103,000;Determine sales required to achieve an IBIT objective of $75,000;9. Calculate the payback period for the following project. Use straight-line depreciation.;Purchase of equipment?$100,000;Annual Savings?$30,000;Depreciable life of asset?5 years;Salvage value?0;10. Use the following information to determine the cause of sales variances: (10 points);Budget?Actual?Variance;Room Sales?463,500?516,750;Information from managers budget working papers;Rooms:?4,500;Average room rate:?$103.00;Current months statistics from the accounting department;Rooms:?5,300;Average room rate:?$97.50;11. Provide a series of flexible budgets giving Sales, Variable Costs;Fixed Costs and Net Income for the year for estimated sales levels of;1000, 1500, and 2000 units, using fixed costs of $3,000 and variable;costs per unit of $3.00 assuming a sales price per unit of $5.25;Unit Sales??1000?1500?2000;Sales Dollars;Variable Costs;Fixed Cost;IBIT;12. Calculate the first month?s ending cash balance for the following;Beginning cash balance of $15,000;$200,000 Sales, with 40% paid in cash. Half of the sales on account is paid equally in the month of sale and the next month.;Expenses were $120,000 all on credit. 20% paid in the month of purchase and the balance paid the second month.


Paper#40070 | Written in 18-Jul-2015

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