A hotel has a capacity of 100 single bed-rooms and 40 double bed-rooms. The average occupancy for single bed-room is 80% and for double bed-rooms is 60% throughout the year of 365 days. The rent for double bed-room has b

CS Executive · Cost and Management Accounting · PYQS · June 2019
A hotel has a capacity of 100 single bed-rooms and 40 double bed-rooms. The average occupancy for single bed-room is 80% and for double bed-rooms is 60% throughout the year of 365 days. The rent for double bed-room has been fixed 1.50 times of rent of single bed-room. Total operational cost of the year is ₹1,96,45,760 and hotel earns margin of safety of 20% on chargeable price. Chargeable room rent per day for single and double bed-room will be:
(A) ₹556.80 and ₹835.20
(B) ₹580 and ₹870
(C) ₹646.90 and ₹970.40
(D) ₹517.50 and ₹776.30

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Service Costing

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