University of Toronto Revenue Management for The Hospitality Industry Worksheet
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Course:
Question
Revenue Management for the Hospitality Industry Due Date: 20 Dec 2022
1
2
Total
Score
50
Name and
Questions No. 1: A company is at present working at 90% capacity producing 13500 units per
annum. It operates a flexible budgetary control system.
(25 Marks)
90%
USD
Sales
Fixed Expenses
Semi-fixed expenses
Variable expenses
Units produced
100%
USD
15,00,000
3,00,500
97,500
1,45,000
13,500
16,00,000
3,00,600
1,00,500
1,49,500
15,000
Labour and material costs per unit are constant under present conditions. Profit margin is 10%. (a) You
are required to determine the differential cost of producing 1500 units by increasing capacity to 100%.
(b) What would you recommend for an export order the minimum price taking into account that
overseas prices are much lower than indigenous prices?
Solution:
? 1 ? ? 3 ?
Questions No. 2: The Hospitality sector is a good example wherein the businesses involve
both manufacturing (food preparations) as well as service operations. The sold products are
evaluated by the customers and they are also rated based on the service that the seller
provides. With reference to the industry discuss the following aspects of service operation:
a.Discuss the elements that need to be planned in a Service Framework of a Hospitality
setup.
(15 Marks)
b.What are the challenges faced by the Service Managers who manage these service
operations?
(10 Marks)
Solution:
? 2 ? ? 3 ?
? 3 ? ? 3 ?
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