Compute the average room rate and food cost percentage

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Reference no: EM13856213

Problem 1

Identify the following as a revenue center or a support center:

Administrative and general

Marketing department

Room' department

Food department

Telecommunications department

Property operation and maintenance.

Problem 2

A motel has the following annual information. (Net indicates revenue after allowances.)

Room's revenue (net)

$897,500

Food revenue (net)

358,300

Beverage revenue (net)

159,870

Cost of food sales

135,200

Paid rooms occupied

17,950

Rooms available (75 daily)

27,375 (75 X 365)

Food covers

37,716

Compute the following ratios:

Average room rate

Occupancy percentage

Average food check

Food cost percentage

 

Reference no: EM13856213

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