Below is a table containing financial information for Akerley Inn for the 2015 and2016 fiscal year. Use the information in the table to answer the following questions.Note that in 2016, Akerley Inn entered into an agreement with an online servicecompany that allows travelers to book vacant rooms at Akerley Inn at a discountedprice.20162015Room rental revenue$3,000,000$2,800,000Number of rooms available for rent100100Number of nights in the year365365Total nights available (# of rooms x # of nights in the year)36,50036,500Nights booked25,55022,995a) Calculate the Occupancy Rate (Note: Occupancy Rate = Nights booked ÷ Totalnights available)b) Calculate the Revenue per Available Room (Note: Revenue per Available Room =Room rental revenue Total nights available)c) Calculate the Average Daily Rate (Note: Average Daily Rate = Room rental revenue÷ Nights booked)

Occupancy Rate : It refers to the ratio of rented or used space to the total amount of available…

a) Calculate the Occupancy Rate (Note: Occupancy Rate = Nights booked + Total nights available) b) Calculate the Revenue per Available Room (Note: Revenue per Available Room = Room rental revenue Total nights available) c) Calculate the Average Daily Rate (Note: Average Daily Rate = Room rental revenue - Nights booked)

a) Calculate the Occupancy Rate (Note: Occupancy Rate = Nights booked + Total nights available) b) Calculate the Revenue per Available Room (Note: Revenue per Available Room = Room rental revenue Total nights available) c) Calculate the Average Daily Rate (Note: Average Daily Rate = Room rental revenue - Nights booked)

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter4: Completing The Accounting Cycle

Section: Chapter Questions

Problem 3CP

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