1. Compute the projected revenue level for July using a four-month moving average and the following sales data

January            $180,000

February          $220,000

March              $230,000

April                $200,000

May                 $250,000

June                 $280,000

1. A motel has an occupancy rate of 75%, with 260 rooms available per day. At an ARR of $68; forecast room revenue for the month using 30 days.

1. Compute the variable cost per unit and the fixed cost per month for the semi-variable expense based on the information provided using the high-low method

Month                         Volume                       Labor Cost     

1                                  1500                            $280

2                                  1280                            $220

3                                  2500                            $380

4                                  1750                            $310

5                                  1250                            $230

1. If menu prices increase by 5% next year and volume increases by 8% beginning January 1^st, forecast sales for the first 6 months

Month             Sales                Price Increase              Volume increase = Budget

January            35,000

February          38,000

March              44,500

April                32,500

May                 48,000

June                 46,000

1. Use the weighted average to compute the average room rate from the following information:

Rooms             Rate

            Single              45                    $65.00

            Double            55                    $85.00

            Suite                15                    $125.00

1. Use the following information

Sales = $537,000

Average Guest Check = $18.75

Food Cost Percent = 35.0%

IBIT = $150,000

Calculate Break-even point

1. Complete the in/off season analysis for the following information

Last Year                     In-Season                    Off-Season                  If Closed

            (12 months)                 (9 months)                   (3 months)                   off-season

Sales    $400,000                     $300,000

VC      $300,000

CM      $100,000

FC       mce_markernbsp; 60,000

IBIT    mce_markernbsp; 40,000

1. Use the CVP analysis method to calculate sales revenue required to achieve an IBIT of $75,000 with the following forecast data: Sales Forecast = $373,000

Variable costs = $167,000

Fixed costs = $103,000

Determine sales required to achieve an IBIT objective of $75,000

1. Calculate the payback period for the following project. Use straight-line depreciation.

Purchase of equipment                        $100,000

Annual Savings                                   $30,000

Depreciable life of asset                      5 years

Salvage value                                      0

Use the following information to determine the cause of sales variances: (10 points)

Budget             Actual              Variance

Room Sales                 463,500           516,750

Information from managers budget working papers

Rooms:                        4,500

Average room rate:      $103.00

Current months statistics from the accounting department

Rooms:                        5,300

Average room rate:      $97.50

1. Provide a series of flexible budgets giving Sales, Variable Costs, Fixed Costs and Net Income for the year for estimated sales levels of 1000, 1500, and 2000 units; using fixed costs of $3,000 and variable costs per unit of $3.00 assuming a sales price per unit of $5.25

Unit Sales                               1000                1500                2000

Sales Dollars

Variable Costs

Fixed Cost

IBIT

Calculate the first month's ending cash balance for the following:

Beginning cash balance of $15,000

$200,000 Sales, with 40% paid in cash.  Half of the sales on account is paid equally in the month of sale and the next month.

Expenses were $120,000 all on credit.  20% paid in the month of purchase and the balance paid the second month.