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Operation Budgeting for Department Manager

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Jackie Jackson, the rooms department manager of Waverly Motor Hotel, is preparing a condensed 20X6 annual budget. She has the following information upon which to base her estimates.

-Estimated occupancy percentage:75%
-Rooms:100
-Average rate: $50.00
-Labor: Variable:$5.00/room
Fixed:$100000(annual)
-Other operating expenses:$2.50/room

Questions:
1. Prepare a condensed budget for the rooms department.( Assume that the hotel is open 365 days a year).

2. The Wverly's management requires that the department have a departmental profit of at least $1000000 and 75% of revenue. Will Ms. Jackson's condensed budget projections be acceptable to the hotel's management?

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Solution Summary

The solution discusses the operating budgeting for a department manager of Waverly Motor Hotel.

Solution Preview

Please see the attached file.

CONDENSED ANNUAL BUDGET
in $
Revenues= ( 100*75%*50*365) 1368750
(Number of Rooms*Average rate * Estimated occupancy ...

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