Week Eight EOC; Question Four

Answers: 

a.   The total revnue for October 2009 was $545,000 and the total revenue for October 2010 was $583,000. Revenue is important because "ecommend special room restrictions (for example, minimum length of stay requirements) that serve to optimize the total revenue generated by the hotel during a specific time period (Dopson 289)".

b.  The GOP in dollars for October 2009 was $162,000 and the GOP for October 2010 was $184,550. "Gross operating profit (GOP) is, in effect, total hotel revenue less those expenses that are considered directly controllable by management (Dopson 296)."

c.   The percentage of GOP to total revnues in October 2009 was 29.72% and in October 2010 was 31.65%.

d.  The flow-through being achieved by Santi's hotel is 59.34%. This is higher than 50% so there are profits being made. "Flow-through is a measure of the ability of a hotel to convert increased revenue dollars to increased gross operating profit dollars (Dopson 296)".

Dopson, Lea R. Managerial Accounting for the Hospitality Industry. Wiley, 09/2008. VitalSource Bookshelf Online.