Problem:
A resort hotel has a dining room that has no business from street trade; it is dependent solely on the occupancy of its rooms for its sales revenue. It has 150 rooms. During the month of June it expects 80 percent occupancy of those rooms. Because the resort caters to the family trade, there are on average three people per occupied room per night. From experience, management knows that 95 percent of the people occupying rooms eat breakfast, 25 percent eat lunch, and 75 percent eat dinner in the hotel dining room (some of the units have kitchen facilities, which is why some of the resort's guests do not use the dining room). The dining room is open seven days a week for all three meals. Its average meal prices are
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Breakfast:
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$ 7.50
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Lunch:
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$12.50
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Dinner:
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$25.20
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Calculate the budgeted dining room revenue for the month of June.