Cost Approaches to Pricing
Name: _________________________________ Points: 15.0
HM 476 * Homework 6-1 *Chapter 9: Cost Approaches to Pricing
- The Sample Hotel uses the simplest time series approach for forecasting monthly revenues. The current year’s revenues by department are multiplied by 1 + x percent to forecast the next year’s revenues. The current year’s department revenues for January and percentage increases for the coming year are provided below.
Q: Calculate monthly forecasted revenues by department below:
| Department | 20×1 revenues | Percentage Increase | 20×2 Forecasted Revenues |
| Rooms | $192,000 | 5% | |
| Food | 45,500 | 3% | |
| Beverage | 18,200 | 4% | |
| Telecommunications | 9,400 | 2% |
- The Aleidon Middle School forecasts its lunch meals using the exponential smoothing method discussed in this chapter. The recent results and forecasts have been as follows:
| Forecast | Actual Demand | |
| Day 1 | 300 | 320 |
| Day 2 | 310 | 330 |
Q: Determine the smoothing constant.
Q: Provide the forecast of lunch meals for Day 3.
Name: _________________________________ Points: 15.0
HM 476 * Homework 6-2 *Chapter 9: Cost Approaches to Pricing
- The 150-seat Blue Ridge Café forecasts sales based on seat turnover and average selling price by meal period. Beverage revenues are estimated to equal 15% of food sales. The relevant information for food sales is as follows:
| Seat Turnover | Average Selling Price | |||
| Day of Week | Breakfast | Lunch | Breakfast | Lunch |
| Sunday | 0.5 | 0.6 | $7.95 | $12.50 |
| Monday | 1.0 | 1.5 | 8.25 | 11.25 |
| Tuesday | 1.1 | 1.4 | 8.25 | 11.25 |
| Wednesday | 1.2 | 1.5 | 8.25 | 11.25 |
| Thursday | 1.3 | 1.6 | 8.25 | 11.25 |
| Friday | 1.2 | 1.3 | 8.25 | 11.25 |
| Saturday | 0.8 | 0.8 | 7.50 | 10.50 |
Q: Forecast the food sales by meal period and day of the week
Q: forecast beverage sales by meal period and day of the week.
