Question

Smith's corum Homo Current Month Last Manth Vartance October September Hotel Salerno Sales (3) Wor Sales (1) of (Current Month's Sales Sales Last Months) 87.94 5 225.745 8049 1.222 176 6.196 2.8% 3.246 100.096 5 14.530 $ 2146 2007 $ 255,416 5.7% 2096 3.14 100.096 180 1,578 229 $ 5.237 2.396 182 46% 4.196 26.94 Sales Room Revenue $ 226,303 Other Services Room Service $ 15,760 Banquet/Catering Services $ 2322 can Shop 8167 Total Sales S257,552 Expenses Room Expenses Breakfast and $ 5,055 Coffee Supplies $ 10,356 Repairs & Maintenance $ 9,344 General Expenses $ 60,054 Utilities $ 9,968 Total Room Expenses 595577 Other Services Room Service $ 1,890 Banquet/Catering S 2,092 Services Gift Shop $ 3,803 Total Other Services $ 7.785 Travel Agency $10.504 Advertising $ 1.861 Total Expenses $ 115,727 Payroll Management $ 60,387 Hourly $ 56,843 Total Wages $ 117,230 Total Employee Benefits $ 1,303 Total Payroll $118.533 $ 10,116 $ 9,546 $ 63,307 $ 15,732 $ 103,938 4.546 4.296 2009 7.016 46.096 240 202 2.453 5,764 8,361 4496 42.295 12.096 28.6% $ $ 1,760 2,204 12.19 30.846 - 130 112 47.59 46.646 24.996 4.146 0.746 44.996 $ 3.796 $ 7,760 $ 9.295 $ 2.508 $ 123,501 -25 -1.209 26.296 3.646 109 48.49 647 612 23.446 22.196 45546 0.546 46,096 $ 60,363 S 56,265 $116,628 $ 1,562 $118.190 23.6% 22.09 45.796 0.64 46.3% -343 Total Cost $234, 260 91.04 $241,691 94.646 Using the Smith's Hotel Report, if your goal for next month is to increase gross margin by 10% compared to the current month, and your Tota Expenses will not change, what is the best goal to set for Total Sales? (Gross Margin - Total Sales - Total Expenses) $272,000 B $261,000 $259,000 $266,000

using the smith Hotel report if your goal for next month it's increase gross margin by 10% compared to the current month and your total

Answer 1

The correct answer is option C - $259000

Notes

Current Gross Margin = Sales - Total Expenses = 257552-234260 = $23292

Increased gross margin = $23292 * (1.10) = $25621.20

Total Sales = Gross Margin + Total Expenses

= 125621.20+234260 = $259881.20

Please comment in case of any issue and I will be happy to help.