Week 8 EOC: Quiz 8 Question 4.

a.    The total revenues in Oct 2009 was $545,000 and the total revenue in Oct 2010 was $583,000.Food and beverage revenues typically make up the largest portion of a hotel’s non-room revenue. (300).

b.  The GOP in dollars in 2009 was $162,000.  The GOP in dollars in 2010 was $184,550. Flow-through was created by managerial accountants to measure the ability of a hotel to convert increases in revenue directly to increases in GOP. (296).

c.    The GOP in percentage in 2009 was 29.72%.  The GOP in percentage in 2010 was 31.66%. Gross operating profit (GOP) is total hotel revenue less those expenses that are considered directly controllable by management. (298).

d.  The Flow-through percentage is 59.34%. The Flow -through is higher than 50% so it reflects efficiency in making more profits from additional revenue.