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

Cornerstones of Cost Management (Cornerstones Series)
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ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
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Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 18E: Carmichael Corporation is in the process of preparing next years budget. The pro forma income...
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Question 14 (
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?
e) If you actually sold 155,000 rooms would the variance be positive or negative
Transcribed Image Text:Question 14 ( 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? e) If you actually sold 155,000 rooms would the variance be positive or negative
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