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Jackie Jackson, the rooms department manager of Waverly Motor Hotel, is preparing a condensed 20X6 annual budget. She has the following information upon which to base her estimates.
-Estimated occupancy percentage:75%-Rooms:100-Average rate: $50.00-Labor: Variable:$5.00/roomFixed:$100000(annual)-Other operating expenses:$2.50/room
Questions
1. Prepare a condensed budget for the rooms department.( Assume that the hotel is open 365 days a year.)
2. The Wverly's management requires that the department have a departmental profit of at least $1000000 and 75% of revenue. Will Ms. Jackson's condensed budget projections be acceptable to the hotel's management?
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