Question

Dawne Juan is the food and beverage director for a mid-size hotel in a beach destination area. The general manager of the hotel has given Dawne a target of 10 percent profit for this year. Dawne’s staff is predominantly composed of her beach buddies. Although she is good at controlling most of her costs, she has a hard time telling her friends to go home when business slows down, and she needs to reduce her staff. If she doesn’t make her profit goal, her general manager will likely reprimand her, and she could possibly lose her job. Express Dawne’s expenses and profit as a percentage of total revenue, both this year and last year, to determine if she met her profit goal (fill in all blanks).

	This Year	%	Last Year	%
Revenue	$1,448,956		$1,094,276
F&B Expense	463,666			35%
Labor Expense	652,030			40%
Other Expense		15%	186,027
Total Expenses
Profit				8%

Was Dawne effective at controlling her expenses? Did she meet the profit goal set by the general manager? If not, what could Dawne do in the future to help her make her target profit.  

Answer:  

Answer 1