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Hospitality Financial Management Question Paper

Hospitality Financial Management

Course:Bachelor Of Science In Hospitality Management

Institution: Kenyatta University question papers

Exam Year:2009

KENYATTA UNIVERSITY
UNIVERSITY EXAMINATIONS 2008/2009
SECOND SEMESTER EXAMINATION FOR THE DEGREE OF BACHELOR
SCIENCE (HOSPITALITY AND FINANCIAL MANAGEMENT)

HIM 407: HOSPITALITY AND FINANCIAL MANAGEMENT

DATE:
FRIDAY 27TH AUGUST 2009
TIME: 11.00 A.M – 1.00P.M
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INSTRUCTIONS:
Attempt all questions in Section A and B. Attempt Only ONE question in Section C.

SECTION A

Q1.
Since a feasibility study for a proposed new hotel project cannot guarantee that the venture will be successful, of what value is such a study? [10 Marks]
Q2.
List and discuss three advantages of budgeting. [10 Marks]
Q3.
Define the term contribution margin. [10 Marks]
Q4.
Determine the amount of operating income necessary to yield a net income after tax of 28,000 using a current tax rate of 20%. [40 Marks]

SECTION B
Q5.
Using the following information determine the average at (a) single and (b) double room rates.
- average rooms sold per day : 400
- average rooms double occupied : 150
-spread wanted between single and double rooms: 80
-average daily revenue expected: 18800

SECTION C
Answer ONE questions from this Section
Q6.
The owner of the restaurant and bar wants a 20 % net income after tax return on his investment of 180,000. The tax rate is 28%. What is the wanted net income after tax?
Q7.
Assume you manage a small motel which has 40 rooms with an average rate of Shs. 320 on 70% occupancy. Fixed cost of 2400000 and the variable costs per room of 60. What do you anticipate your operating income to be in the coming year.

Hospitality Financial Management Question Paper

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