• Assume you are working on budgeting for the room department of your hotel.

• Assume the hotel's 'Room Revenue (Sales)' was $1,640,000 during 2019. Based on the lodging forecast report, you expect the 'Room Revenue (Sales)' to increase by 3.7% next year.

• Assume the 'Guest Supplies' expenses (variable costs) from the room department was $246,000 during 2019. For 2020, this variable cost will remain at the same percentage of the Room Revenue (Sales) as experienced in 2019.

• Assume the 'Salaries' expenses (fixed costs) from the room department was $280,000 during 2019. For 2020, this fixed cost will increase by 2% due to the expected increase in living expenses in this area.

1.What will be the budgeted 'Room Revenue (Sales)' for 2020 ($)? 

2. What will be the budgeted 'Guest Supplies' expenses for 2020 ($)?

3. What will be the budgeted 'Salaries' expenses for 2020 ($)?

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Budget for the Room Department 1 Budgeted Room Revenue Sal... View the full answer