P6.1 (Show work + Computations)

P6.1

s an average yearly occupancy rate of 74%. The forecasted sales revenue for the cor nin gyer What is the average room rate expected to be? ration had 45 each, 220-square-foot rooms. average 70% 390 is required. De E6.9 Assume a rooms each, 160-square-foot rooms with an average 70% occupan s, and 2s types of rooms. Room sales revenue per day of $2.390 is reauor both termine the rate to charge for each square foot. E6.10 Using the following information, determine the average single and dou ble room rates: A verage rooms sold per day: 60 Average rooms double occupied: 24 Spread wanted between single and double room rates: $12.00 Average daily revenue: $2,988 O BLE MS P6.1 You have the following projections about the costs in a family resta for next year: Net incorme required: 22% after income tax on the owner' investment of $80,000, income tax rate is 28 s present Present book value (consolidated) of furniture and equipment is $76,000, depreciation rate is 20% Depreciation Interest on a loan outstanding of $35,000 is 8%. Interest: Known Costs Insurance License Utilities Maintenance Administration Salaries $ 3,000 2.500 8,400 3,600 9,800 41,600 Variable Costs Food cost, 38% of sales revenue Wage cost, 34% of sales revenue Other costs, 12% of sales revenue a. What sales revenue would the restaurant have to achieve next year in order to acquire the desired net income after tax? b. What is the required average check needed to achieve the annual sales revenue objective if the restaurant is open 365 days, had 60 seats, and had an average seat turnover of 2.5 times per day