• A 181 room hotel forecasts its average room rate to be $125 for the next year with an 0.53 Occupancy rate.
• The hotel is open 365 days a year.
• The hotel department has a fixed wage cost with benefits of $242,007 per year.
• General Variable costs are $7.82 per occupied room.
• The variable wage cost for housekeeping employees is $19 per hour and it takes 1.04 hour(s) to clean a room.
• The hotel has a 70 seat dining room.
• The dining room is open 314 days of the year for two meals.
• The dining room is only open for lunch and dinner.
• Lunch seat turnover is 1.86 with an average check of $13.
• Dinner seat turnover is 1.48 with an average check of $13.
• Direct dining room operating costs are $308,665.
• The dining room's indirect expenses are $103,498.

Calculate operating income:

Answer rating: 100% (QA)

Calculation of Operating Income Deascription Working Amount Revenue Income from room rent 181 x 12... View the full answer