A hotel reports the following for its two divisions. The company uses a balanced scorecard and sets a goal of 85% occupancy in its hotels.U.S. InternationalCurrent Year Prior Year Current Year Prior YearHotel occupancy rates 87% 83% 79% 78%Which division(s) exceeded the occupancy goal for the current year?Which division(s) improved its occupancy performance for the current year?Prepare a balanced scorecard for the current year.
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- U.S. Division: Current Year Occupancy = 87% (exceeded the goal) - International Division: Current Year Occupancy = 79% (did not exceed the goal) Result: The U.S. Division exceeded the occupancy goal for the current year. Show more…
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1. Total Occupancy % = 2. Available Occupancy % = 3. Average Guests per Room = 4. Average Room Rate = 5. Average Food Check = 6. RevPAR = 7. Food Cost % = 8. Profit Margin % = 9. Return on Assets (use the balance for June 30) = 10. Return on Owner Equity (use the balance for June 30) = 11. Earnings per Share = 12. Price/Earnings Ratio (aka PE Ratio) = 13. Current Ratio = 14. Accounts Receivable Turnover = 15. Solvency Ratio = 16. Debt Equity Ratio =
Akash M.
Based on the income statement and the information below: The income tax rate is 25%. Number of rooms is 240, and hotel operates at 80% occupancy. Room, Food & Beverage, and Other Operated Department expenses are directly variable with total sales revenue. Administrative & General: $2,400,000 is fixed, the remainder is variable with total revenue. Marketing $1,240,000 is fixed, the remainder is variable with total revenue. Utilities cost: $180,000 is fixed, the remainder is variable with total revenue. Property Operations & Maintenance: $188,000 is fixed, the remainder is variable with total revenue. Assume both franchise fees and management fees to be fixed. Answer the following questions. 1. What is the revenue at breakeven point? 2. At breakeven point, what would the room revenues be? 3. At breakeven point, what is the occupancy at $320 ADR? 4. What revenue is required to achieve desired operating income (income before income tax) of $12,000,000? 5. If the operating income (income before income tax) of $12,000,000 achieved, how much would the food and beverage revenue be? 6. If rooms and food & beverage revenues increase by 10% and 15%, respectively, through price increases, what would the new breakeven be? 7. If fixed cost increases by $2,400,000, how much additional revenues is needed to cover the additional fixed expenses? 8. What would the required revenue be if a net income of $9,000,000 is desired? 9. What would the occupancy rate be if a net income of $9,000,000 is achieved at $320 ADR? 10. If the depreciation expense decreases by 100,000, what would the breakeven point be? 11. If the hotel reduces all departmental expenses by 10%, what would the new breakeven be? 12. What would the required revenue be if a net income of $10,000,000 is desired and at the same time the fixed expenses increase by $1,200,000?
Kerry Phillips is forecasting sales of her 100-room limited-service Phillips Inn. She forecasts by market segment. The most recent year's (20X3) percentage of rooms sold and average daily room rate (ADR) by market segment were as follows: Segment Percentage of Rooms Sold ADR Business 40% $85.00 Group 10% $75.00 Tourist 50% $90.00 On an average day, her Inn experiences a 75% occupancy. With considerable advertising, she believes she can achieve an occupancy of 80%. Further, she believes she can increase the tourist segment up to 55% at the expense of the business segment. In addition, she projects ADR increases of 5%. Forecast the room revenue for January 20X4. (15 points)
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