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.
