Income/Guest Can you explain the difference on performance between august and se
ID: 2568215 • Letter: I
Question
Income/Guest
Can you explain the difference on performance between august and september?
a. Compute average check per division in January and February: August September Sales Guests Average Sales Guests Average Room Service $45,000 1,200 $35,000 1,250 Dining Room $225,000 4,000 $175,000 3,700 Bar-Lounge $10,500 650 $5,400 637 Coffee Shop $83,000 4,200 $65,000 4,300 Banquets $325,400 6,600 $235,000 6,800 Totals $688,900 16,650 $515,400 16,687 b. Calculate average of each cost/expense element per guest in August and September: August September Element Dollars Guests Average Dollars Guests Average Cost of Sales $136,200 16,650 $127,800 16,687 Wages 107,900 16,650 101,500 16,687 Benefits 14,000 16,650 14,500 16,687 Linen 6,400 16,650 6,000 16,687 China 10,600 16,650 9,800 16,687 Supplies 9,800 16,650 9,400 16,687 Other 19,200 16,650 17,600 16,687 Total 304,100 16,650 286,600 16,687 c. Calculate the departmental income per guest in August and September: August September Revenue $688,900 $515,400 Expenses 304,100 286,600 Income 384,800 228,800Income/Guest
Can you explain the difference on performance between august and september?
Explanation / Answer
The difference on performance between August and September is on account of the considerable decrease in the average revenue per guest from $41.38 in August to $30.89 in September while the average cost per guest has decreased only from $18.26 to $17.18 in the respective months.
a. August September Sales $ Guests Average $ Sales $ Guests Average $ Room service 45000 1200 37.50 35000 1250 28.00 Dining room 225000 4000 56.25 175000 3700 47.30 Bar-lounge 10500 650 16.15 5400 637 8.48 Coffee shop 83000 4200 19.76 65000 4300 15.12 Banquets 325400 6600 49.30 235000 6800 34.56 Totals 688900 16650 41.38 515400 16687 30.89 b. August September Element Dollars Guests Average $ Dollars Guests Average $ Cost of sales 136200 16650 8.18 127800 16687 7.66 Wages 107900 16650 6.48 101500 16687 6.08 Benefits 14000 16650 0.84 14500 16687 0.87 Linen 6400 16650 0.38 6000 16687 0.36 China 10600 16650 0.64 9800 16687 0.59 Supplies 9800 16650 0.59 9400 16687 0.56 Other 19200 16650 1.15 17600 16687 1.05 Total 304100 16650 18.26 286600 16687 17.18 c. August September Revenue 688900 515400 Expenses 304100 286600 Income 384800 228800 Number of guests 16650 16687 Income/Guest 23.11 13.71