A hotel has 200 rooms (120 Deluxe rooms and 80 Premium rooms). The normal occupancy in summer is 80% and winter 60%. The period of summer and winter…

CA Intermediate · Cost and Management Accounting · RTP · September 2024
A hotel has 200 rooms (120 Deluxe rooms and 80 Premium rooms). The normal occupancy in summer is 80% and winter 60%. The period of summer and winter is taken as 8 months and 4 months respectively. Assume 30 days in each month. Room rent of Premium room will be double of Deluxe room. Hotel is expecting a profit of 20% on total revenue, total cost for the year is 2,66,11,200. Calculate the room rent to be charged for Premium room.
(A) 450 per room day
(B) 900 per room day
(C) 380 per room day
(D) 760 per room day

Suggested Answer and Working Notes:

Correct Answer: Option (B)

900 per room day

Topics: Service Costing

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