- 5 Marks
Question
A business operates a guest house with 80 single room suites and 40 double room suites.
During the year in review:
- The rent of the double room suite is twice that of the single room.
- The occupancy of the single room suites is 100%, while that of the double room suites is 75%.
Assume that the year has 365 days.
Required:
Calculate the total number of room suites occupied during the year.
Answer
- Single room occupancy = 80 rooms × 365 days × 100% = 29,200 room days
- Double room occupancy = 40 rooms × 365 days × 75% = 10,950 room days
Total room suites occupied during the year = 29,200 + 10,950 = 40,150 room days
- Tags: Capacity Utilization, Room Occupancy, Service Costing
- Level: Level 1
- Topic: Costing Methods
- Series: NOV 2022
- Uploader: Theophilus