Question 1
After completing the table, answer the questions that follow:
Thandi's Hotel Darla's Hotel250 rooms 250 roomsDay Rooms Sold ADR Occ % RevPAR Rooms Sold ADR Occ % RevPAR
Monday 205 $117.21 82.00% 158 63.20% $62.64
Tuesday 230 135.45 92.00% 124.61 249 89.53 99.60% 89.17
Wednesday 226 131.25 90.40% 118.65 230 91.14 83.85
Thursday 228 132.22 120.58 248 92.15 99.20% 91.41
Friday 195 78.00% 89.86 138 101.51 56.03
Five Day Total 126.8 81.80% 76.62
a. What was Thandi's RevPar on Monday?
b. What was Darla's ADR on Monday?
c. What was Darla's occupancy % on Wednesday?
d. What was Thandi's occupancy % on Thursday?
e. What was Thandi's ADR on Friday?
f. What was Darla's occupancy % on Friday?
g. How many rooms did Thandi sell during the five days?
h. What was Thandi's occupancy% for the five days?
i. What was Thandi's five day RevPAR total?
j. How many rooms did Darla sell during the five days?
k. What was Darla's ADR for the five day period?
l. Did Thandi or Darla have a higher RevPAR during this five-day period? What do you think was the reason for this difference?
Question 2
| Corporate Marketing Expense |
|
|
| Position |
Salary |
Office and Travel Expense |
Total Costs |
| Corporate Marketing Director |
$165,000 |
$75,000 |
$240,000 |
| Corporate Revenue Manager |
$110,000 |
$60,000 |
$170,000 |
| Total Cost |
$275,000 |
$135,000 |
$410,000 |
| Property |
# of Rooms in Property |
Annual Occupancy |
Net Income |
| Denver |
425 |
70.2% |
$1,085,875 |
| Dallas |
510 |
68.6% |
$1,518,984 |
| Orlando |
820 |
64.9% |
$1,532,416 |
| Atlanta |
466 |
71.1% |
$1,932,222 |
| New York |
371 |
79.4% |
$2,353,513 |
a. What is the allocation amount for each hotel if the allocation is made on the basis of an "equal" per-property cost allocation?
| Total Cost |
Number of Properties |
Cost per Property |
b. What is the allocation amount for each hotel if the allocation is made on the basis of property size?
| Property |
# of Rooms in Property |
% of Total |
Cost per Property |
| Denver |
425 |
|
|
| Dallas |
510 |
|
|
| Orlando |
820 |
|
|
| Atlanta |
466 |
|
|
| New York |
371 |
|
|
| Total |
2,592 |
c. What is the allocation amount for each hotel if the allocation is made on the basis of number of rooms sold per year?
| Property |
# of Rooms in Property |
Annual Occupancy |
# of Rooms Sold |
% of Total |
Cost per Property |
| Denver |
425 |
70.2% |
|
|
|
| Dallas |
510 |
68.6% |
|
|
|
| Orlando |
820 |
64.9% |
|
|
|
| Atlanta |
466 |
71.1% |
|
|
|
| New York |
371 |
79.4% |
|
|
|
| Total |
d. What is the allocation amount for each hotel if the allocation is made on the basis of net income earned?
| Property |
Net Income |
% of Total |
Cost per Property |
| Denver |
$1,085,875 |
|
|
| Dallas |
$1,518,984 |
|
|
| Orlando |
$1,532,416 |
|
|
| Atlanta |
$1,932,222 |
|
|
| New York |
$2,353,513 |
|
|
| Total |
$8,423,010 |