Problem:
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/room
Fixed:$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?