Answers: (Correct or Wrong) Rooms department income before taxes is 67,600 F&B department income before taxes is (2,000)
The unallocated income statement of de Souza Motel is shown below:
|
|
Rooms |
F&B |
Total |
|
Revenue |
257,000 |
130,000 |
387,000 |
|
Cost of Sales |
|
48,000 |
48,000 |
|
Payroll and Related Expenses |
60,000 |
30,000 |
90,000 |
|
Other Direct Expenses |
40,000 |
12,000 |
52,000 |
|
Total Expenses |
100,000 |
90,000 |
190,000 |
|
Departmental Income |
157,000 |
40,000 |
197,000 |
|
Administrative &General |
|
|
60,000 |
|
Sales& Marketing |
|
|
25,000 |
|
POM& Utility costs |
|
|
20,000 |
|
GOP |
|
|
92,000 |
|
Insurance |
|
|
10,000 |
|
|
|
|
12,000 |
|
Total Fixed Charges |
|
|
22,000 |
|
Income Before Income Taxes |
|
|
70,000 |
|
Income Taxes |
|
|
30,000 |
|
Net income |
|
|
44,000 |
Additional Information:
Square Footage: Rooms: 120,000 F&B 80,000
Answers: (Correct or Wrong)
Rooms department income before taxes is 67,600
F&B department income before taxes is (2,000)
The De Souza Motel would incur a EUR 40,000 pretax loss by closing the F&B department
Step by step
Solved in 2 steps
