The Holiday Hotel has 40 bedrooms with a maximum capacity of 490 sleeper nights per week. Average capacity is 60 per cent throughout the year. Meals provided to guests have been costed and the average food cost per person per day is as follows:
|
Breakfast |
3.60 |
|
Lunch |
11.00 |
|
Dinner |
13.40 |
Direct wages and staff meals per week are as follows:
|
Restaurants and kitchens |
3,430 |
|
Housekeeping |
1,952 |
|
General |
1,760 |
Direct expenses per annum are Rs. 45,760 for housekeeping and Rs. 52,000 for the restaurant. Indirect expenses amount to Rs. 3,41,120. Which should be apportioned on the basis of floor area? The floor areas are:
|
Square metres |
|
|
Bedrooms |
3,600 |
|
Restaurant |
1,200 |
|
Service area |
600 |
A net profit of 10 per cent each must be made on restaurant takings and accommodation takings.
You are required to calculate what inclusive terms per person should be charged per day. Show the split between meals and accommodation charges.
There is also a proposal to take on hire adjoining building and convert it into a pastry shop. The annual cost estimates are:
|
Rates and taxes |
12,000 |
|
Wages |
54,000 |
|
Replacement of utensils |
2,400 |
|
Depreciation of fixed assets |
3,000 |
|
Fuel cost |
10 per cent of the cost of pastries. |
Sales are expected to average Rs. 1,50,000 p.a., the monthly figures varying according to seasons. Prices shown on the tags are arrived at by marking up the costs by 150 per cent. Calculate the estimated annual profit. Also draw an estimate of cost and profit for the first month when the sales are expected to be Rs. 15,000.