Following is the information about the New Hotel in Kathmandu:
➢ Total number of single rooms = 40 (100% for 5 months and 60% for 7 months)
➢ Total number of double rooms = 30 (70% for 5 months and 50% for 7 months)
Annual expenses and other information are given below:
➢ Room attendants 4 staff salary = Rs 30,000 per month per staff.
➢ Administrative 3 staff salary = Rs 20,000 per month per staff.
➢ Other staff 2 salary = Rs 15,000 per month per staff.
➢ Electricity charge = Rs 120,000 per year.
➢ Repair charge = Rs 30,000 per year.
➢ Insurance premium = Rs 60,000 per year.
➢ Laundry charge = Rs 10,000 per month
➢ Depreciation on furniture = 25% of Rs 500,000.
➢ Depreciation of land and building = 5% of 8,000,000.
➢ Miscellaneous expenses = Rs 100,000 per year.
➢ Profit 20% on the cost of sales.
Assumed that the double bad room shall be regarded as 1.5 of the single room for the fixing the rate of the room.
Required:
a) Statement of operating cost
b) Room charge for single and double rooms per day.
