Reference no: EM133097474

Questions -

Q1. On December 31st 20X0, the BalanceHotel had total assets of $5,875,000, consisting of $1,875,000 in liquid assets and $4,000,000 in long-term assets. At the same time, BalanceHotel's short-term liabilities were $625,000, with long-term liabilities of $2,000,000. What is BalanceHotel's current ratio on December 31st, 20X0?

a) 2

b) 2.13

c) 2.24

d) 3

e) 6.4

Q2. If Yummy Restaurant has 200 seats, and it averages 300 covers per lunch period, what is Yummy Restaurant's revenue yield per seat if an average lunch shift earns $4,580 in revenue?

a) Not enough information to be able to answer the question

b) 66.67%

c) 1.5

d) $15.27

e) $22.90

Q3. A buffet restaurant has always operated at a 20% cost of sales. Food prices have recently risen quite considerably, and the buffet price needs to be adjusted. If the cost of sales per buffet served is $10, what does the price of the buffet need to be?

a) $12

b) $40

c) $50

d) Need to know the mark-up multiplier to be able to calculate the buffet price.

e) Need to know the ratio of fixed to variable costs to price the buffet.

Q4. A 250-room hotel cost $75,000,000 to build, and it has F&B and conferencing facilities that occupy 50% of the total floor space of the building. According to the building cost rule of thumb, the average room rate charged by this hotel should be:

a) $150

b) $300

c) $410.96

d) $821.92

e) Not enough information to be able to answer the question.