A 135 room hotel forecasts its average room rate to $90.00 for the next year...
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Accounting
A 135 room hotel forecasts its average room rate to $90.00 for the next year at 65% occupancy. The rooms department has a fixed wage cost of $160,000.
Variable wage cost for housekeeping is $14.00 per hour and it takes one hour to clean a room. Benefits are 20% of total wages.
Linen, laundry, supplies, and other direct costs are $4.00 per occupied room per day.
The hotel has a 60-seat, restaurant. Breakfast average guest check is $25.00 and is open 5 days a week with a .75 seat turnover.
The restaurant is closed at lunch. The average dinner check is $35.00 and there is a 2.0 seat turnover for dinner and they are open 6 nights a week for dinner.
The restaurant is open 52 weeks a year. Beverage sales are 10% of breakfast and dinner food sales. Direct costs for the restaurant are 70% of total restaurant sales revenue.
Indirect costs for the restaurant are estimated at $600,000 next year of total restaurant sales revenue.
WHAT IS the operating income ?
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