A restaurant has 100 seats with an average turnover of 2.5, and an average check

ID: 2600600 • Letter: A

Question

A restaurant has 100 seats with an average turnover of 2.5, and an average check of $14.75. If the restaurant is open 260 days/year, what is the annual sales revenue? Number of seats Seat turnover/day Average check Days open per year Estimated annual revenue A motel has 80 rooms, an occupancy rate of 62% and an average room rate of $74.00. What is the estimated sales revenue for the month of April? Number of rooms Occupancy rate Average room rate Days in April Estimated April revenue A motel budgets 8,000 rooms sold at a price of $82.00/room. Actual sales were 8,480 rooms at $77.00 each. Compute the price, volume and budget variances and indicate whether they are favorable or unfavorable. Volume Price Variance Fav/Unfav? Price Variance Volume Variance Budget Revenue Actual Revenue Variance Fav/Unfav? Revenue Budget Variance A restaurant has 100 seats with an average turnover of 2.5, and an average check of $14.75. If the restaurant is open 260 days/year, what is the annual sales revenue? Number of seats Seat turnover/day Average check Days open per year Estimated annual revenue A motel has 80 rooms, an occupancy rate of 62% and an average room rate of $74.00. What is the estimated sales revenue for the month of April? Number of rooms Occupancy rate Average room rate Days in April Estimated April revenue A motel budgets 8,000 rooms sold at a price of $82.00/room. Actual sales were 8,480 rooms at $77.00 each. Compute the price, volume and budget variances and indicate whether they are favorable or unfavorable. Volume Price Variance Fav/Unfav? Price Variance Volume Variance Budget Revenue Actual Revenue Variance Fav/Unfav? Revenue Budget Variance

Explanation / Answer

All the figures should be multiplied to get the sales revenue.

Seats

100

Turnover/day

2.5

Average check

$14.75

Days

260

Annual revenue = 100 × 2.5 × $14.75 × 260 =

$958,750