Terminus Hotels

1. Assess the decisions made by the hotels management in relation to the various offers received Due to the uncertain economical and financial situation in 2008, the Marketing Department of the tip Hotel forecasted an average occupation level of 40% during 2009. In November 2008, the segment received two offers from unbendable customers, the first at a rate of €90 for 10 fashions per day, and the second at a rate of €95 for 5 rooms per day. two offers were rejected. Based on the numbers, it appears that the accounting section rejected both offers because the rate fell short of the total woo per room per day for the hotel. Assuming an occupancy rate of 40% and Master-Budget dexterity Utilization costing, the budgeted total room cost per day was €111 (€86 fixed cost + €25 variable cost).

Capacity creation| Fixed follows| Capacity Level| Fixed damage per Room| Variable Cost per Room | Total Cost per Room| Theoretical Capacity| 2,500,000| 200| 34| 25| 59| Practical Capacity| 2,500,000| 195| 35| 25| 60| Normal Capacity | 2,500,000| 120| 57| 25| 82| Master-budget Capacity | 2,500,000| 80| 86| 25| 111| Additionally, if the costing department decided to recalculate the unit costs due to the neediness of the regular customers, frankincense spreading the fixed cost oer a smaller number of rooms, the price would rise and hold up increasingly uncompetitive; effectively a downward remove spiral. Finally, the case states As in the case of Pearson Travel, Impressa Reisen kept to its regular bid and did not depart from prior forecasts, which indicates that in previous years both bids would have been accepted. Assuming that in the previous years, the occupancy rate matched the longer-term average of 60% (Normal Capacity), the total cost per room at €82, would have been below the bid price, and thus accepted. In summary, the choice of Master-Budget Capacity Utilization, especially in a year-of-crisis when fixed costs are spread across a... If you necessitate to get a full essay, order it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper