80.2K

Verified Solution

Link Copied!

1. Calculate the actual and budget department profit margins (remember profit margins are percentages) for the following hotel departments. Fill in all the cells in yellow From your ratios module remember: Profit Margin = Profit / Revenue (convert the result to a percentage and round to 1 decimal) Hint: CIB should start with: =B18/_.. Please show your forumlas in the cells below Room Revenues Restaurant Revenues Beverage Revenues Catering Revenues Total Hotel Revenues Actual $1,250,000.00 $215,000.00 $75,000.00 $480,000.00 $2,020,000.00 Budget $1,200,000.00 $225,000.00 $80,000.00 $450,000.00 $1,955,000.00 Profit Margin Profit Margin Ideally, we want these percentages to be high and thus our expenses to be low. Room Profit Restaurant Profit Beverage Profit Catering Profit Total Hotel Profit $960,000.00 $18,000.00 $22,000.00 $170,000.00 $1,170,000.00 $910,000.00 $20,000.00 $25,000.00 $160,000.00 $1,115,000.00 2. Calculate the incremental room revenue and profile and actual retention/flow through as a percentage. Hint: Substract the budgeted from the actual What is the incremental room revenue? What is the incremental room profit? Actual retention/flow through percent: Hint: divide the incremental profit by the incremental revenue an convert to a percentage

Answer & Explanation Solved by verified expert

See Answer