Academia Resort anticipates the following changes in the business environment: Management expects an increase in interest
Question:
Academia Resort anticipates the following changes in the business environment:
• Management expects an increase in interest rates of 0.25% per quarter.
• Fall in room patronage of 12%.
• The guests will be willing to spend more per head if the staff up sells successfully - management expects a 20% increase in both food and beverage average sales. Room revenue is based on the following calculation:
• Room rate is $120.00 per day. These rooms are all twins.
• The Resort has 7,270 guests a year and all food and beverage revenue come from these guests.
• Staff wages represent 25% of total revenue and management decided that in order to ensure good service this percentage must remain the same.
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw