A resort hotel has a dining room that has no business from street traffic; it is
ID: 2471604 • Letter: A
Question
A resort hotel has a dining room that has no business from street traffic; it is dependent solely on the occupancy of its rooms for its sales revenues. It has 150 rooms. During the month of June it expects 80% occupancy of those rooms. Because the resort caters to families, there is on average three people per occupied room per night. From past experience, management knows that 95% of the people occupying a room eat breakfast, 25% eat lunch, and 75% eat dinner in the hotel’s dining room. The dining room is open seven days a week for all three meals. Its average meal prices are:
Breakfast: $ 4.50
Lunch: $ 7.50
Dinner: $12.60
Calculate the budgeted dining room revenue for the month of June.
Hint: You need to calculate number of estimated guests to calculate the revenue figures. First figure out volumes and then figure out guests based on the information provided.
Explanation / Answer
Answer:
Calculatiom of Budgeted dining room revenue for the month of June;
Total Number of Rooms = 150 rooms
Expected Occupancy = 80% that is 120 rooms will be occupied on average;
Expected Number of People = 120 rooms x 3 persons per room = 360 persons;
No. of persons eating breakfast = 95% of 360 = 342 persons
No. of persons eating lunch = 25% of 360 = 90 persons
No. of persons eating dinner = 75% of 360 = 270 persons
Therefore, budgeted dining room revenue = 342 persons x $ 4.50 + 90 persons x $ 7.50 + 270 persons x $ 12.60 = $ 5,616