Accounting Question
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Expert Solution
Step 1 introduction
Occupancy rate: This rate helps to calculate how much occupied rooms in the month or year in the hotels and how much increase the occupancy rate to achieve more profits.
Step 2 a. Determination of the total guest nights In June
|
Particular |
Guest nights |
|
Guest |
4,400 |
|
Guest |
3,600 |
|
Guest |
2,250 |
|
Guest |
2,400 |
|
Guest |
100 |
|
Total rooms occupied in June |
12,750 |
|
Total available rooms in June (30 days x 500 rooms) |
15,000 |
|
Occupancy rate (12750/15,000) |
85% |
|
Total guests nights (30 nights x 85%) |
25.5 Nights |
Step 3 Answer
Answer: a) 25.50 Nights
Step 4 b. Determination of the Available Rooms nights in June
|
Particular |
percentage |
|
Total percentage |
100 |
|
Less: Occupied percentage |
85 |
|
Un occupied |
15 |
|
Available nights in June (15% x 30 nights) |
4.5 Nights |
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