# Accounting

## Accounting

Answer the 24 questions

**1****. When sales go up, Total Fixed Costs (TFC) will go up?**

Select one:True. False

**When sales go down, Unit Fixed Cost (UFC) will go up?**

Select one:True. False

**Relevant cost is also called sunk cost?**

Select one:True. False

**4.Differential cost is the difference in cost between one course of action and another?**

Select one:True. False

**Smitty’s Place recorded sales of $40,000 with a profit of $5,000. If the VR is .60, what is TFC?**

Select one:

a.$11,000

b.$24,000

c.$16,000

d.$35,000

**Walls Bar and Grille has been looking over their operations. They have a USP of $4.00 and there were 12,000 units sold. There was $8,000 in profit and the TFC was $16,000. Calculate the TVC for Walls Bar and Grille.**

Select one:

a.$24,000

b.$48,000

c.$16,000

d.$100,000

**Walls Bar and Grille has been looking over their operations. They have a USP of $4.00 and there were 12,000 units sold. There was $8,000 in profit and the TFC was $16,000. What sales level, (in $) is needed to obtain a profit of $50,000?**

Select one:

a.$132,000

b.$100,000

c.$112,000

d.$150,000

**8.Al Harrington’s Wacky Waving Inflatable Arm Flailing Tubeman Warehouse and Emporium recorded the following information from its lunch period: **

# of Customers80

# of Servers 5

Total Sales$1,150

# of Seats 40

** ****1.What is the average check?**

**2.What is the Seat Turnover?**

**3.What is the average dollar per seat?**

**4.What is the average dollar per server?**

**5.If the server received an average of 15% in tips from their sales, what is the average tip received by each server? Select all 5 questions** :

a.$14.38

b.$28.75

c.$34.50

d.2

**9.The Aday Lodge is a 120-room property with 60% occupancy. The lodge maintains and ADR of $80. Last month, which has 30 operating days, the hotel recorded the following information**:

**Variable costs.**** Fixed costs**

Wages $ 35,900.00 Mortgage $ 20,000.00

Supplies $ 22,740.00. Insurance $ 8,000.00

Utilities $ 13,320.00 Depreciation $ 6,000.00

Miscellaneous $ 5,800.00 Salaries $ 14,000.00

Based on the information above, calculate the following:

**How much is Total Sales? **

Select one:

a.$172,800

b.$165,000

c.$175,000

d.$170,000

**The Aday Lodge is a 120-room property with 60% occupancy. The lodge maintains and ADR of $80. Last month, which has 30 operating days, the hotel recorded the following information:**

Variable costs | Fixed costs | |||

Wages | $ 35,900.00 | Mortgage | $ 20,000.00 | |

Supplies | $ 22,740.00 | Insurance | $ 8,000.00 | |

Utilities | $ 13,320.00 | Depreciation | $ 6,000.00 | |

Miscellaneous | $ 5,800.00 | Salaries | $ 14,000.00 |

Based on the information above, calculate the following:

Variable Rate

* You solved total sales in the previous problem

Select one:

.45

.55

.30

.52

**The Aday Lodge is a 120-room property with 60% occupancy. The lodge maintains and ADR of $80. Last month, which has 30 operating days, the hotel recorded the following information:**

Variable costs | Fixed costs | |||

Wages | $ 35,900.00 | Mortgage | $ 20,000.00 | |

Supplies | $ 22,740.00 | Insurance | $ 8,000.00 | |

Utilities | $ 13,320.00 | Depreciation | $ 6,000.00 | |

Miscellaneous | $ 5,800.00 | Salaries | $ 14,000.00 |

Based on the information above, calculate the following:

Breakeven Dollars

#### Note

*You solved VR in the last problem.

Select one:

$87,272.73

$115,384.62

$90,786.93

$85,325.65

**The Aday Lodge is a 120-room property with 60% occupancy. The lodge maintains and ADR of $80. Last month, which has 30 operating days, the hotel recorded the following information:**

Variable costs | Fixed costs | |||

Wages | $ 35,900.00 | Mortgage | $ 20,000.00 | |

Supplies | $ 22,740.00 | Insurance | $ 8,000.00 | |

Utilities | $ 13,320.00 | Depreciation | $ 6,000.00 | |

Miscellaneous | $ 5,800.00 | Salaries | $ 14,000.00 |

Based on the information above, calculate the following:

Breakeven rooms

*You solved BE$ in the last problem.

Select one:

- 1,090.91
- 2,000
- 1,000
- 1,500

**13.Melissa’s Diner recorded the following information for the last operating period:**

Menu Item | Units Sold | UVC | Sales |

A | 89,143 | $2.10 | $624,000.00 |

B | 48,000 | $4.48 | $384,000.00 |

C | 152,000 | $2.04 | $912,000.00 |

D | 40,000 | $7.20 | $480,000.00 |

Total Sales | $2,400,000.00 |

calculate the PSTS (sales mix) for each item

Select one:

a.

A = .26

B = .16

C = .38

D = .20

b.

A = .15

B = .23

C = .36

D = .25

c.

A = .33

B = .21

C = .41

D = .45

d.

A = ..55

B = ..23

C = .67

D = .98

**14.Melissa’s Diner recorded the following information for the last operating period:**

Menu Item | Units Sold | UVC | Sales |

A | 89,143 | $2.10 | $624,000.00 |

B | 48,000 | $4.48 | $384,000.00 |

C | 152,000 | $2.04 | $912,000.00 |

D | 40,000 | $7.20 | $480,000.00 |

Total Sales | $2,400,000.00 |

Calculate the Variable Rate for each item.

Select one:

a.

A = .30

B = .56

C = .34

D = .60

b.

A = .15

B = .23

C = .36

D = .25

c.

A = .33

B = .21

C = .41

D = .45

d.

A = ..55

B = ..23

C = .67

D = .98

**15.Melissa’s Diner recorded the following information for the last operating period:**

Menu Item | Units Sold | UVC | Sales |

A | 89,143 | $2.10 | $624,000.00 |

B | 48,000 | $4.48 | $384,000.00 |

C | 152,000 | $2.04 | $912,000.00 |

D | 40,000 | $7.20 | $480,000.00 |

Total Sales | $2,400,000.00 |

Calculate the Weighted Variable Rate (WVR) for each item.

*Remember that you solved Item VR and Item PSTS in the previous problems, no need to recalculate them.

Select one:

a.

A = .08

B = .09

C = .13

D = .12

b.

A = .15

B = .23

C = .36

D = .25

c.

A = .33

B = .21

C = .41

D = .45

d.

A = ..55

B = ..23

C = .67

D = .98

**Top of Form****Melissa’s Diner recorded the following information for the last operating period:**

Menu Item | Units Sold | UVC | Sales |

A | 89,143 | $2.10 | $624,000.00 |

B | 48,000 | $4.48 | $384,000.00 |

C | 152,000 | $2.04 | $912,000.00 |

D | 40,000 | $7.20 | $480,000.00 |

Total Sales | $2,400,000.00 |

Calculate the Overall Weighted Variable Rate (WVR)

*Remember that you solved the Item WVR’s in the previous problem, no need to recalculate them here.

Select one:

a.Overall WVR = .42

b.Overall WVR = .58

c.Overall WVR = .50

d.Overall WVR = .30

**Walls Tavern is an 80-seat operation with a seat turnover rate of 1.7 for lunch and 1.5 for dinner. The average check for lunch is $8.50 and dinner is $12.00. Assuming they are open 6 days per week (52 weeks in a year), calculate the following:**

Total annual operating days

Select one:

1.312

2.365

3.300

4.180

**Walls Tavern is an 80-seat operation with a seat turnover rate of 1.7 for lunch and 1.5 for dinner. The average check for lunch is $8.50 and dinner is $12.00. Assuming they are open 6 days per week (52 weeks in a year), calculate the following:**

Annual guest count for lunch and dinner

Select one:

a.Lunch Annual: 42,432

Dinner Annual: 37,440

b.Lunch Annual: 37,440

Dinner Annual: 42,432

c.Lunch Annual: 27,154

Dinner Annual: 34,765

d.Lunch Annual: 34,765

Dinner Annual: 27,154

**Walls Tavern is an 80-seat operation with a seat turnover rate of 1.7 for lunch and 1.5 for dinner. The average check for lunch is $8.50 and dinner is $12.00. Assuming they are open 6 days per week (52 weeks in a year), calculate the following:**

Annual sales for lunch and dinner

*You calculated guest count per period in the previous question. No need to recalculate them.

Select one:

a.Lunch Annual: $360,672

Dinner Annual: $449,280

b.Lunch Annual: $449,280

Dinner Annual: $360,672

c.Lunch Annual: $532,897

Dinner Annual: $1,334,987

d.Lunch Annual: $350,643.45

Dinner Annual: $431,343.67

**20.Jace’s Luxury Resort is a 140 room property. Last month the hotel recorded an average rate of $55 and incurred labor costs of 40% of total room sales.**

**The management of the hotel is estimating that the occupancy percentage for next month (30 days) will be 75%. The average room rate and the labor cost percentage will both remain unchanged.**

**Use this information to solve the following:**

**What is the forecasted DAILY rooms sold for the next month?**

Select one:

a.105

b.103

c.100

d.210

**21.Jace’s Luxury Resort is a 140 room property. Last month the hotel recorded an average rate of $55 and incurred labor costs of 40% of total room sales.**

**The management of the hotel is estimating that the occupancy percentage for next month (30 days) will be 75%. The average room rate and the labor cost percentage will both remain unchanged.**

**Use this information to solve the following:**

**What is the forecasted TOTAL rooms sold for the next month?**

**You already solved daily rooms sold in the previous problem. No need to recalculate it again.

Select one:

a.3,150

b.2,007

c.3,596

d.4,200

** 22.****Jace’s Luxury Resort is a 140 room property. Last month the hotel recorded an average rate of $55 and incurred labor costs of 40% of total room sales.**

**The management of the hotel is estimating that the occupancy percentage for next month (30 days) will be 75%. The average room rate and the labor cost percentage will both remain unchanged.**

**Use this information to solve the following:**

**What is the forecasted DAILY room sales (in $) for the next month?**

**You already solved daily rooms sold in the previous problem. No need to recalculate it again.

Select one:

a.$5,775

b.$6,857

c.$3,596

d.$4,200

**23.Jace’s Luxury Resort is a 140 room property. Last month the hotel recorded an average rate of $55 and incurred labor costs of 40% of total room sales.**

**Use this information to solve the following:**

**What is the forecasted TOTAL room sales (in $) for the next month?**

**You already solved TOTAL rooms sold in a previous problem. No need to recalculate it again.

Select one:

a.$173,250

b.$112,874

c.$544,394

d.$420,000

**24.Jace’s Luxury Resort is a 140 room property. Last month the hotel recorded an average rate of $55 and incurred labor costs of 40% of total room sales.**

**Use this information to solve the following:**

**What is the forecasted TOTAL labor costs for the next month?**

**You already solved TOTAL room sales (in $) in a previous problem. No need to recalculate it again.

Select one:

a.$69,300

b.$75,876

c.$44,394

d.$20,000