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Management and Cost Accounting (BUSN9117) Semester 2, 2020 Assignment Part 2 Topic Coordinator: Cheryll Lim
Management and Cost Accounting (BUSN9117) Semester 2, 2020 Assignment Part 2 Topic Coordinator: Cheryll Lim
Semester 2, 2020
Assignment Part 2
Topic coordinator: Cheryll Lim
Student details
Lux Hotel
Contribution Margin Income Statement
Bed 1 (Single) Bed 2 (Double) Bed 3 Total
(Penthouse)
Sales Revenue $433,620 $1,073,100 $383,250 $1,889,970
Variable Costs:
Staff Costs (78,052) (193,158) (68,985) (340,195)
Purchases (65,043) (160,965) (57,488) (283,496)
Marketing Costs (21,681) (53,655) (19,163) (94,499)
Utilities Cost1 (13,008.6) (32,193) (11,497.5) (56,699.1)
Maintenance Cost2 (39,025.8) (96,579) (34,492.5) (170,097.3)
Total Variable Cost (216,810.4) (536,550) (191,626) (944,986.4)
Contribution Margin 216,809.6 536,550 191,624 944,983.6
Fixed Costs:
Administration Costs (50,000) (100,000) (50,000) (200,000)
Utilities Cost3 (5,400) (10,800) (5,400) (21,600)
Maintenance Cost4 (9,000) (18,000) (9,000) (36,000)
Other Operating (75,000) (150,000) (75,000) (300,000)
Expenses
Total Operating Expenses (139,400) (278,800) (139,400) (557,600)
Net Profit $77,409.6 $257,750 $52,224 $387,383.6
1
Variable utilities cost =
2
Variable maintenance cost =
3
Fixed utilities cost =
4
Fixed maintenance cost =
Number of rooms 9 12 3 24
Bed 2 Bed 3
Bed 1 (Single) (Double) (Penthouse) Total
1
Contribution Margin =
Bed 1 = $433,620 - $216,810 = $216,800
3
Weighted average contribution margin (WACM) per night =
393,250.85/365= 1,077.4
(d) Determine the overall break-even level of rooms and number of night
stay of each room type.
In. Units
In Dollars
(f) Suppose that Lux Hotel desires to earn a $500,000 profit. Determine the
occupancy rates required to earn the desired profit.