 |
 |
|
||||||||
|
|
|
|
|
|
|
||
HA401 : The Class : Finance : Revenues : Profit Percentages
PROFIT PERCENTAGES
Profit percentages tell how much of the revenue dollar is left over after all expenses are paid. Profits are measured in dollar amounts and percentages. Dollars profit measure the absolute amount of profit while percentage profit measures how much of the sales dollar is left over as profit. Profit percentages can be applied to departments and total operations. Department profit percentages are important because departments can be different in profitability. For example, rooms departments traditionally run above 60%, banquets around 30-35%, lounges 25-35%, and restaurants 0-10%. The rooms department generates 60 cents profit for every revenue dollar while restaurants is 10 cents or less.
SALES MIX PERCENTAGE
Sales mix percentage tells you how much of your total sales come from different revenue departments. From a profit perspective, you would like to have highest sales in your highest profit department. For example: $1,000 in rooms sales at 60% profit = $600 profit $1,000 in food sales at 10% profit = $100 profit. An example of a hotel sales mix follows: $ Sales Sales Mix % $1,000 rooms sales 50% 500 food sales 25% 300 banquet sales 15% 200 lounge sales 10% $2,000 Total Sales 100% Mix percentages can also be calculated for rooms sold, customer counts, or any other volume units.
Once you have completed this module you should:
Go on to Reading 5: Budgets
and Forecasting
or
Go back to Topic 1: Revenues
E-mail Lloyd Shelton at Lloyd.Shelton@nau.edu
or call (928) 527-7518
 |
|
Copyright © 2001 Northern
Arizona University
ALL RIGHTS RESERVED |