Jackie Jackson, the rooms department manager of Waverly Motor Hotel, is making condensed 20X6 annual budget. She has information given below 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. Make condensed budget for rooms department.( Suppose that hotel is open 365 days a year.)
2. Wverly's management needs that department have departmental profit of at least $1000000 and 75% of revenue. Will Ms. Jackson's condensed budget projections be acceptable to hotel's management?