A performance report for the Exeter hotel for the three months ending 30 June 2022 showed:...

Transcribed Image Text:

A performance report for the Exeter hotel for the three months ending 30 June 2022 showed: Actual £ 579,500 213,500 100,000 Sales Revenue Variable Costs Fixed costs Profit Number of rooms occupied Sales Room Rate Variable Costs 266,000 6,100 Head Office Budget Assumptions 80% occupancy per month (30 days) £105 per night £25 per room per night Fixed/Overhead Costs £1,000 per night There is also a profit target for each hotel of £120,000 per month. Evaluate performance for the quarter to budget and provide recommendations for budgeting and cost management. A performance report for the Exeter hotel for the three months ending 30 June 2022 showed: Actual £ 579,500 213,500 100,000 Sales Revenue Variable Costs Fixed costs Profit Number of rooms occupied Sales Room Rate Variable Costs 266,000 6,100 Head Office Budget Assumptions 80% occupancy per month (30 days) £105 per night £25 per room per night Fixed/Overhead Costs £1,000 per night There is also a profit target for each hotel of £120,000 per month. Evaluate performance for the quarter to budget and provide recommendations for budgeting and cost management.

Answer rating: 100% (QA)

To evaluate the Exeter hotels performance for the three months ending 30 June 2022 we need to compare the actual results with the budgeted or target figures provided by the Head Office Lets break down ... View the full answer