Question

Sleepy Hollow Hotels Inc.(SH) operates two hotels in theMeto eion.ach hoeand rooms: standard room and deluxe. SHH has a total of 300 deluxe rooms an following are the relevant budgeted and the actual results for SHH for the a etro region. Each hotel has two grades of reson70t May The ro Sales Revenue for 92 days in the Quarter: Budgeted Revenue Actual Revenue $8,721,600 $8,825,100 Average Daily Occupancy Rates Deluxe Standard # of Rooms 240 285 # of Rooms 490 455 80% 70% Budgeted 95% 65% Actual Industry Data Actual Budget Total average daily demand for hotel 13,455 rooms 5.5% 14,600 rooms 5% rooms in the region SHH's market share Operating Budget Deluxe Standard Daily room rate Variable costs per room per day $150 61 $120 40 Contribution margin per unit $ 89 s 80 Average daily number of rooms occupied Total rooms for the quarter (92 days) Fixed costs for the quarter 240 22,080 $1,500,000 490 45,080 $2,000,000 Actual Operating Results: Standard Deluxe Daily room rate Variable costs per room per day $120 $145 63 41 Contribution margin per unit s 79 $ 82 Average daily number of rooms occupied Total rooms for the quarter (92 days) Fixed costs for the quarter 455 41,860 $2,000,000 285 26,220 $1,500,000 Required For the quarter ending May 31, 20xx, conduct a sales variance ana following variances based on contribution margin. The variances shou rooms for the quarter. Indicate whethe are favorable orunfe caiculated based on to r the variances are favorable or unfavorable. 1. Sales Price (CM) Variance (5 points) 2. Sales Volume Variance (5 points) 3. Sales Quantity Variance (5 points)

Answer 1

Question Sleery Htotlow tel c-) uteton hota inth standard Yoomandelve. SHH has a tata 300 delute Svoms and too sandard Yoomd. Budgeted Canbributon pax unit. taon lAdwede) Caf able To orwble amout the atex $3,68,460 fatoulable

od S raduz モ30 s) [5.5% -5%J x 13,455-bond xt 82.96 peruuab