Difference $ Forecast (5) Actual (S) % 784,000 280,000 33,600 22,400 1,120,000 951,000 210,000 34,500 21,750 1,217,250 3 Hotel Summary Operating Statement: February 4 5 6 REVENUE 7 Rooms 8 Food and Bevenge 9 Other Operated Departments 10 Rentals and Other Income 11 Total Revenue 12 13 DEPARTMENTAL EXPENSES 14 Rooms 15 Food and Beverage 16 Other Operated Departments 17 Total Departmental Expenses 18 19 TOTAL DEPARTMENTAL INCOME 20 21 UNDISTRIBUTED OPERATING EXPENSES 22 Administrative and General 23 Sales and Marketing 24 Property Operation and Maintenance 25 Utilities 26 Total Undistributed Expenses 27 28 GROSS OPERATING PROFIT 29 30 MANAGEMENT FEES 31 32 INCOME BEFORE FIXED CHARGES 235,200 210,000 20,250 465,450 266,250 174.200 19,850 460,300 654,550 756,950 100,800 78,400 56,000 44,800 280,000 102,450 77.850 61,250 45.700 287,250 374,550 469,700 56,000 60,850 318,550 408,850 O 33 12,000 24,000 20,000 56,000 12,000 24,000 20.000 56,000 34 FIXED CHARGES 35 Rent 36 Property and Other Taxes 37 Insurance 38 Total Fixed Charges 39 40 NET OPERATING INCOME 41 42 LESS: REPLACEMENT RESERVES 43 44 ADJUSTED NET OPERATING INCOME 45 262,550 352.850 120,000 120,000 142,550 232,850 46 What would mantlilalu lit 16 a. What would most likely explain why Sophie's rooms expense was higher than her original forecast? 17 Answer: 48 99 50 b. What would most likely explain why Sophie's food and beverage expense was lower than her original forecast? Answer: 51 52 c. What would most likely explain why Sophie's management fees expense was higher than her original forecast? $3 Answer: 54 55 d. What would most likely explain why Sophie's insurance expense was exactly equal to her forecast? Answer: 56 57 58 59