Where applicable, replace 'X' with the non-zero last digit of your student ID 900111547

1. Variable Costs
   1. Explain the difference between unit variable costs and total variable costs.

1. Unit variable costs are constant, but unit fixed costs are not. Explain using a restaurant cost item example.

1. A hotel has daily fixed room cleaning costs of $X,500. The hotel's variable cost for room cleaning is $24.50 per room. What would be the hotel's total room cleaning costs on a day when 1X5 rooms are to be cleaned?

1. Define a step cost and then give an example explaining why it is a step cost.

1. What is difference between indirect costs and overhead costs? Give an example explaining.

1. A regional director of marketing allocates her $14,000 per month salary to three properties she supervises. The allocation is based upon each property's room count. Hotel A has 450 rooms. Hotel B has 3X5 rooms. Hotel C has 550 rooms.

1. What is the cost allocation rate?

1. How much of the regional marketing director's monthly salary will be charged to Hotel C?

1. Why is it important for a manager to know her non-controllable costs?

1. Opportunity costs are used in decision making but don't appear on income statements. Explain.

1. List at least three variables you will need to conduct a breakeven analysis.

1. A hotel pays an income tax rate of 28% on its profits. The hotel seeks an after-tax profit of $X0,000 per month. Rounded up to the nearest dollar, what is the amount of before-tax profit the hotel must achieve each month to meet its after-tax profit goal?

1. A manager is considering staying open one extra hour per day and wants to calculate his minimum sales point (MSP). The manager's variable costs are 30%, food costs are 30%, and fixed costs are 70%. The minimum labor cost for staying open one extra hour is $1X5.00. Rounded up to the nearest dollar, what is this manager's MSP?

1. A restaurant averages sales of $120,000 when serving 20,000 guests. The restaurant's variable costs when serving 20,000 guests is $X0,000. The contribution margin per guest is $1.50. Fixed monthly costs are $ X0,000. What is this restaurant's monthly breakeven point in sales dollars?

1. Each member of a restaurant operator's wait staff can serve 40 guests per each hour worked. The operator anticipates serving 2X0 guests tomorrow between noon and 1:00 p.m. How many servers must be scheduled between noon and 1:00 p.m. tomorrow to serve the number of anticipated guests?

1. What can cause low-balling in budgeting and forecasting?

1. Hotels need historical, current, and future data to make forecasts, but restaurants mostly need historical data to make accurate forecast. Briefly explain this difference in data requirements between hotels and restaurants.

1. Based on the following data, what would be this operation's two-day weighted check average?

	Revenue	Guests Served	Average Sale Per Guest
Saturday	$ 2,000	150
Sunday	$ 1,400	200

1. A restaurant manager achieved $X2,500 in revenue last January. For this coming January she predicts a X.5% increase in monthly sales. What will be this manager's revenue forecast for this coming January?

1. When a hotel's room revenue forecasts are consistently and unrealistically too low, then room rates will be realistically low. What will happen to the profits/losses?

1. A hotel has 400 available rooms. On Monday night the hotel's revenue manager forecasts 80 stayovers, 1X5 arrivals, 10 no-shows, 25 walk-ins, and 10 early departures. What will be this revenue manager's forecasted occupancy % for Monday night?

1. The primary business purpose of using regression analysis in the creation of a trend line is to
2. predict past (unknown) values.
3. predict future (known) values.
4. predict future (unknown) values.
5. establish selling prices.

1. Which is another name for the "baseline data" used in the development of a trend line when a manager employs regression analysis?