# Accounting

## Accounting

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

Select one:True. False

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

Select one:True. False

1. 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

1. 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

1. 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

1. 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

1. 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

1. 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

1. 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. 1,090.91
2. 2,000
3. 1,000
4. 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

1. 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

1. 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

1. 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

1. 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.

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 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.

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 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