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Happy Daze Hote


Estimated Income Sta
For the Year Ended Decem

Sales
Cost of goods sold:
Direct materials
Direct labour
Overhead
Cost of goods sold

Gross profit
Expenses:

Selling expenses
Administrative expenses
Total expenses

Income from operations


2
Contribution margin ratio:
Sales
Units

17,374

Variable costs
Contribution margin

Unit Variable Cost

Sales

Contribution margin ratio

3
Break-even sales:
Fixed costs
Sale Price

Unit contribution margin


Break-even sales (units)
Sale price
Break-even sales (dollars)

$266.48

Unit Variable Cost

For each unit level of sales, enter the total sales dollars and total costs. The chart at right will be plotted
After all points are plotted, grab and move the labels provided at the left to identify each area.

Units

0
4,000
8,000
12,000
16,000
20,000

Sales $

0.00
###
###
###
###
###

Costs $

###
###
###
###
###
###

24,000
28,000
32,000
36,000

###
###
###
###

###
###
###
###

5
Margin of safety:
Sale Price

Expected sales
Break-even point

Margin of safety (in dollars)

$266.48
$266.48

Expected sales
Margin of safety (as a percentage of sales)

6
Operating leverage:
Unit CM $

Contribution margin
Income from operations
Operating leverage

$204.61

Happy Daze Hotel


Estimated Income Statement
For the Year Ended December 31 2016

###
988,040.00
838,737.00
###

###
370,339.00

###

Unit Variable Cost

$61.87

###
###
###
76.8%

###

nit Variable Cost

$61.87

chart at right will be plotted as you enter the amounts.


dentify each area.

$204.61
17,374.00
$266.48
###

###
626,004.00

626,004.00
0.00

Units

17,374
17,374

Units

17,374

###
###
0.00
###
0.0%

###
0.00
#DIV/0!

Product Costs
Direct materials
Direct labour
Overhead

Estimated* Estimated
Fixed CostVariable Cost
$0
$838,737
###

$56.87
$0.00
$5.00

Period Costs
Selling expenses
$255,665
Administrative expens $370,339

$0.00
$0.00

Total

###

$61.87

* Estimated variable cost is per unit sold

Cost Volume Profit Chart


Operating Profit Area

Break-Even
Point
Operating Loss
Area

Sale Price
Variable Cost
Cont Margin

Deluxe - High Sold Deluxe - Should Sold


$370.00 ###
$320.00 2,448
$105.00
$75.00
$265.00
$245.00

Sale Price
Variable Cost
Cont Margin

Standard - HighSold Standard - ShouSold


$280.00 ###
$240.00 4,896
$65.00
$45.00
$215.00
$195.00

Financial data
WACM
WASP (ARR)
WAVC

$204.61
$266.48
$61.87

Total rooms sol

17,374

Sales

$4,629,780.00

hart

Operating Profit Area

Sales $
Costs $

Sales mix - rooms sold as %


Deluxe - High
13%
Deluxe - Shoulder
14%
Deluxe - Low
7%
Standard - High
25%
Standard - Should
28%
Standard - Low
13%
Total
100%

Deluxe - Low
Sold
$210.00 ###
$55.00
$155.00
Standard - Low Sold
$170.00 ###
$40.00
$130.00

ms sold as %

Sales Budget
Deluxe Rooms
Standard Rooms

20
40

Room Selling POccupancy


Deluxe room in High season
$370.00
90.00%
Deluxe room in Shoulder sea
$320.00
80.00%
Deluxe room in Low season
$210.00
70.00%
Standard room in High seaso
$280.00
90.00%
Standard room in Shoulder s
$240.00
80.00%
Standard room in Low season
$170.00
60.00%

January
February
March
April
May
June
July
August
September
October
November
December
Total

Season
High
High
Shoulder
Shoulder
Shoulder
Low
Low
Low
Shoulder
Shoulder
High
High

Days ope Deluxe - Hi


31.00
558.00
29.00
522.00
31.00
0.00
30.00
0.00
31.00
0.00
30.00
0.00
31.00
0.00
31.00
0.00
30.00
0.00
31.00
0.00
30.00
540.00
31.00
558.00
366.00
2178.00

Deluxe - ShoulDeluxe - L Standard - HStandard - ShouStandard 0.00


0.00
1116.00
0.00
0.00
0.00
0.00
1044.00
0.00
0.00
496.00
0.00
0.00
992.00
0.00
480.00
0.00
0.00
960.00
0.00
496.00
0.00
0.00
992.00
0.00
0.00
420.00
0.00
0.00
720.00
0.00
434.00
0.00
0.00
744.00
0.00
434.00
0.00
0.00
744.00
480.00
0.00
0.00
960.00
0.00
496.00
0.00
0.00
992.00
0.00
0.00
0.00
1080.00
0.00
0.00
0.00
0.00
1116.00
0.00
0.00
2448.00
1288.00
4356.00
4896.00
2208.00

Unit Room SaDollar Room Sales


1674.00
$518,940.00
1566.00
$485,460.00
1488.00
$396,800.00
1440.00
$384,000.00
1488.00
$396,800.00
1140.00
$210,600.00
1178.00
$217,620.00
1178.00
$217,620.00
1440.00
$384,000.00
1488.00
$396,800.00
1620.00
$502,200.00
1674.00
$518,940.00
17374.00 $4,629,780.00

Direct Materials (Variable Cost per room per day)


Deluxe room in High season
Deluxe room in Shoulder sea
Deluxe room in Low season
Standard room in High seaso
Standard room in Shoulder s
Standard room in Low season

Direct Material Cost


$100.00
$70.00
$50.00
$60.00
$40.00
$35.00

Bathroom
Bathroom
Bathroom
Bathroom
Bathroom
Bathroom

Amenities
Amenities
Amenities
Amenities
Amenities
Amenities

+
+
+
+
+
+

Slippers
Slippers
Slippers
Slippers
Slippers
Slippers

+
+
+
+
+
+

D
D
D
D
D
D

menities
menities
menities
menities
menities
menities

+
+
+
+
+
+

Slippers
Slippers
Slippers
Slippers
Slippers
Slippers

+
+
+
+
+
+

Dressing
Dressing
Dressing
Dressing
Dressing
Dressing

Gown
Gown
Gown
Gown
Gown
Gown

+
+
+
+
+
+

Pens
Pens
Pens
Pens
Pens
Pens

&
&
&
&
&
&

Note
Note
Note
Note
Note
Note

Pads
Pads
Pads
Pads
Pads
Pads

+
+
+
+
+
+

Mini
Mini
Mini
Mini
Mini
Mini

Bar + Champagne
Bar + Champagne
Bar + Champagne
Bar
Bar
Bar

mpagne
mpagne
mpagne

Direct Labour
Fixed Cost (total cost per yeVariable Cost (per room per day)
Chef x 1
$36,500.00
$0.00
Housekeeper x 1
$29,200.00
$0.00
Barista x 1
$13,140.00
$0.00
Front Desk x 1
$32,120.00
$0.00
Guest Service Agent
$72,072.00
$0.00
Guest Service Agent
$8,360.00
$0.00
Operator x 1
$38,072.00
$0.00
Conceirge/Porter x 1
$34,860.00
$0.00
Floor Supervisor x 1
$38,500.00
$0.00
Room Attendants x 2
$63,934.00
$0.00
Room Attendants x 1
$6,793.00
$0.00
Linen Runner x 1
$30,509.00
$0.00
Shift Supervisor x 1
$45,964.00
$0.00
Wait Staff x 2
$93,600.00
$0.00
Wait Staff x 2
$45,336.00
$0.00
Wait Staff x 2
$20,200.00
$0.00
Bartender/Barista x
$49,920.00
$0.00
Chef de Partie x 1
$39,009.00
$0.00
Chef x 1
$52,416.00
$0.00
Chef x 1
$8,360.00
$0.00
Kitchen Apprentice x
$37,440.00
$0.00
Steward x 1
$42,432.00
$0.00
Total
$838,737.00
$0.00
Position
Full Time
Part Time
Casual

Hours per Week

48
25
20

room per day)

Full Time
Casual
Full Time
Full Time
Full Time
Full Time
Casual
Full Time
Full Time
Full Time
Part Time
Casual
Full Time
Full Time
Full Time
Casual
Full Time
Full Time

Based
Based
Based
Based

on
on
on
on

$25
$20
$18
$22

per
per
per
per

hour
hour
hour
hour

x
x
x
x

4
4
2
4

hours
hours
hours
hours

per
per
per
per

day
day
day
day

x
x
x
x

365
365
365
365

days
days
days
days

http://www.payscale.com/research/AU/Job=Kitchen_Chef/Hourly_Rate
http://www.payscale.com/research/AU/Job=Housekeeper/Hourly_Rate
http://www.payscale.com/research/AU/Job=Barista/Hourly_Rate
http://www.payscale.com/research/AU/Job=Front_Desk_Receptionist/Hourly_Rate

st/Hourly_Rate

Overhead
Fixed Cost (total cost per ye
Food and Beverage Manager
$80,000.00
Fixed Asset Depreciation
$190,000.00
Utilities
$50,000.00
Front Office Manager x 1
$65,000.00
Property rent
$1,100,000.00
Duty Manager/Night Audit x
$50,324.00
House Keepering Manager x
$441,566.00
Maintenance x 1
$83,504.00
Maintenance x 1
$8,360.00
Groundskeeper x 1
$21,375.00

Total

$2,090,129.00

Variable Cost (per room per


$0.00
$0.00
$5.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00

$5.00

day)

http://www.payscale.com/research/AU/Jo

http://www.payscale.com/research/AU/Jo
Full Time
Full Time
Full Time
Casual
Part Time

payscale.com/research/AU/Job=Food_and_Beverage_Manager/Salary

payscale.com/research/AU/Job=Front_Office_Manager/Salary

Selling Expenses
Sales Manager
Advertising expenses
Marketing expenses
Sales Representative

Total

Fixed Cost (total cost per ye


$80,000.00
$80,000.00
$50,000.00
$45,665.00

$255,665.00

Variable Cost (per room per day)


$0.00
http://www.payscale.com/research/AU/Job=Hotel_M
$0.00
$0.00
$0.00 Full Time

$0.00

om/research/AU/Job=Hotel_Manager/Salary

Administrative Expenses
Insurance expense
Interest expense
Admin equipment depreciat
Office rent
General Manager
General Manager Assistant

Total

Fixed Cost (total cost per ye


$30,000.00
$35,000.00
$10,000.00
$120,000.00
$124,000.00
$51,339.00

$370,339.00

Variable Cost (per room per day)


$0.00
$0.00
$0.00
$0.00
Full Time
Full Time

$0.00

Master Budget

Assumptions
% Cost of Sales
Interest Rate pa
Mortgage
Fixed Assets (Startup)
Profit & Loss Statement
Sales
Less Cost of Sales
Gross Profit
Operating Expenses
Sales Manager
Advertising expenses
Marketing expenses
Sales Representative
General Manager
General Manager Assistant
Office rent
Admin Equip Depn
Interest expense
Insurance expense
Total Operating Expenses
Net Profit

January

February

March

86%
86%
86%
7%
7%
7%
$ 500,000 $ 500,000 $ 500,000
$ 1,000,000 $ 1,000,000 $ 1,000,000
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

518,940 $
448,773 $
70,167 $
6,667
6,667
4,167
3,805
10,333
4,278
10,000
833
2,917
2,500
52,167
18,000

$
$
$
$
$
$
$
$
$
$
$
$

485,460 $
419,820 $
65,640 $
6,667
6,667
4,167
3,805
10,333
4,278
10,000
833
2,917
2,500
52,167
13,473

$
$
$
$
$
$
$
$
$
$
$
$

396,800
343,148
53,652
6,667
6,667
4,167
3,805
10,333
4,278
10,000
833
2,917
2,500
52,167
1,485

April

May

June

July

August

86%
7%
$ 500,000 $
$ 1,000,000

86%
86%
86%
86%
7%
7%
7%
7%
500,000 $ 500,000 $ 500,000 $ 500,000
### $ 1,000,000 $ 1,000,000 $ 1,000,000

$
$
$

396,800 $
343,148 $
53,652 $

$
$
$
$
$
$
$
$
$
$
$
$

384,000 $
332,078 $
51,922 $
6,667
6,667
4,167
3,805
10,333
4,278
10,000
833
2,917
2,500
52,167
(245)

$
$
$
$
$
$
$
$
$
$
$
$

6,667
6,667
4,167
3,805
10,333
4,278
10,000
833
2,917
2,500
52,167
1,485

$
$
$
$
$
$
$
$
$
$
$
$

210,600 $
182,124 $
28,476 $

217,620
188,195
29,425

$
$
$

217,620
188,195
29,425

6,667
6,667
4,167
3,805
10,333
4,278
10,000
833
2,917
2,500
52,167
(23,691)

6,667
6,667
4,167
3,805
10,333
4,278
10,000
833
2,917
2,500
52,167
(22,742)

$
$
$
$
$
$
$
$
$
$
$
$

6,667
6,667
4,167
3,805
10,333
4,278
10,000
833
2,917
2,500
52,167
(22,742)

$
$
$
$
$
$
$
$
$
$
$
$

September

October

November

December

86%
7%
$ 500,000 $
$ 1,000,000

86%
86%
86%
7%
7%
7%
500,000 $ 500,000 $
500,000
### $ 1,000,000 $ 1,000,000

$
$
$

384,000
332,078
51,922

$
$
$

396,800
343,148
53,652

$
$
$

$
$
$
$
$
$
$
$
$
$
$
$

6,667
6,667
4,167
3,805
10,333
4,278
10,000
833
2,917
2,500
52,167
(245)

$
$
$
$
$
$
$
$
$
$
$
$

6,667
6,667
4,167
3,805
10,333
4,278
10,000
833
2,917
2,500
52,167
1,485

$
$
$
$
$
$
$
$
$
$
$
$

502,200 $
434,296 $
67,904 $
6,667
6,667
4,167
3,805
10,333
4,278
10,000
833
2,917
2,500
52,167
15,737

$
$
$
$
$
$
$
$
$
$
$
$

518,940 $
448,773 $
70,167 $
$
6,667 $
6,667 $
4,167 $
3,805 $
10,333 $
4,278 $
10,000 $
833 $
2,917 $
2,500 $
52,167 $
18,000 $

Total

4,629,780
4,003,776
626,004
80,000
80,000
50,000
45,665
124,000
51,339
120,000
10,000
35,000
30,000
626,004
0

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