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# "AC3025- Hospitality Finance Final Exam"…Complete Answer! Thanks

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AC3025- Hospitality Finance

Final Exam- revised June, 2012

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

MonthVolumeLabor Cost

11500\$280

21280\$220

32500\$380

41750\$310

51250\$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

MonthSalesPrice IncreaseVolume increase = Budget

January35,000

February38,000

March44,500

April32,500

May48,000

June46,000

5. Use the weighted average to compute the average room rate from the following information:

RoomsRate

Single45\$65.00

Double55\$85.00

Suite15\$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 YearIn-SeasonOff-SeasonIf 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 asset5 years

Salvage value0

10. Use the following information to determine the cause of sales variances: (10 points)

BudgetActualVariance

Room Sales463,500516,750

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 100015002000

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.

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## [Solved] "AC3025- Hospitality Finance Final Exam"…Complete Answer! Thanks

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