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Following is the information about the Bisal Hotel in Kathmandu: Total number of single rooms = 50 (100% for 2 months and 60% for 10 months) Total…

2024 · Solved Question with Answer

Following is the information about the Bisal Hotel in Kathmandu:

  • Total number of single rooms = 50 (100% for 2 months and 60% for 10 months)
  • Total number of double rooms = 40 (60% for 4 months and 50% for 8 months)

Annual expenses and other information are given below:

  • Room attendants staff salary = Rs 50,000 per month.
  • Administrative 3 staff salary = Rs 30,000 per month per staff.
  • Laundry and Other staff 2 salary = Rs 20,000 per month per staff.
  • Electricity charge = Rs 120,000 per year.
  • Communication and telephone = Rs 12,000 per month
  • Repair charge = Rs 40,000 per year.
  • Insurance premium = Rs 120,000 per year.
  • Depreciation on furniture = 25% of Rs 500,000.
  • Depreciation on building = 5 % of 9,000,000.
  • Miscellaneous expenses = Rs 120,000 per year.
  • Profit 25% on the cost of sales.

Assumed that the double bad room shall be regarded as 1.50 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.

Solution

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