Reference no: EM132958289

The Galt Hospitality Group has a hotel, dining room and conference centre facility. Financial information is as follows:

                                                           Hotel                         Dining Room                     Conference Centre

Capacity                                      120 rooms                 150 seats                   230 seats

Selling price/unit                             $190                           $40                            $180

Material costs/unit                       $47 (laundry)                  $22 (food)                 $20 (refreshments)

Other variable costs/unit               $20 (cleaning)                  $13 (labour)                $12 (light and heat)

Required:

Problem a) Prepare a budget that shows the total contribution margin for each of the three facilities.

Problem b) Rank the facilities based on the greatest contribution to profitability.