AC 3025 Hospitality Finance Final Exam complete Answer

AC 3025 Hospitality Finance Final Exam complete Answer

AC 3025 Hospitality Finance Final Exam complete Answer

AC 3025 Hospitality Finance Final Exam complete Answer

AC 3025 Hospitality Finance Final Exam complete Answer

AC 3025- Hospitality Finance Final Exam

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.

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