Explore BrainMass

# Operation Budgeting

Not what you're looking for? Search our solutions OR ask your own Custom question.

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

Nathan's Place, open 365 days, consists of an 100 room motel with a 50 seat restaurant shop.
Nathan Harris provides you with the following information:
1. Of the 100 rooms, 80 are doubles and 20 are singles.
2. The doubles are sold for \$65 each and the singles are sold for \$50 each.
3. Forecasted occupany is 80% for doubles and 70% for singles.
4. The average occupancy per room is 1.8.( Only one person stays in a single but two or more may stay in a double for \$65/night.)
5. Forty percent of those staying in the singles and 20% of those staying in the doubles eat breackfast in the restaurant.( There is no walk-in business for breakfast)
The average check is \$5.80
6. The lunch and dinner business have seat turnvers and average checks as follow:

Lunch Dinner
Turnover Aver. Check Turnover Aver. Check
Mon-Fri 1,25 \$6,00 1 \$10,75
Sat. 0,5 \$6,50 1 \$12,50
Sun 1,5 \$7,00 0,5 \$11,25

Q.
1. Forecast the amount of room sales for June 2001.
2. Forecast the amount of breakfast sales for June 2001.( Assume the first day of June is a Monday.)
3. Forecast the amount of Lunch sales for June 2001.
4. Forecast the amount of dinner sales for June 2001.
5. Assume revenue, other than food and room revenue, totals 15% of total sales. What is the forecast for other revenue for June 2001?

#### Solution Preview

Q.
1. Forecast the amount of room sales for June 2001.
Doubles Singles Total
Capacity 80 20
Occupancy 80% 70%
Number of room sales 64 14 78
Per room realisation (in \$) 65 50
Amount of daily room sales (\$) 4160 700 4860
Monthly 145800

2. Forecast the amount of breakfast sales for June ...

#### Solution Summary

This discusses the steps to formulate Operation Budgeting.

\$2.49