Average Cost per Room

The Average Cost per Room computes how much cost (expense) is generated on a per room basis over a period of time.

INSTRUCTIONS: Choose units and enter the following:

• (PP) Total Purchase Price
• (nR) Number of Rooms

Average Cost per Room (ACR): The calculator returns the average cost in U.S. dollars.  However, this can be automatically converted to compatible units via the pull-down menu.

The Math / Science

The formula for the Average Cost per Room is:

    ACP = PP / nR

where:

• ACP = Average Cost per Room
• PP = Purchase Price
• nR = Number of Rooms

Hospitality Calculators

• Average Cost per Room - Average expense per room for a period of time.
• Average Daily Rate - Average daily income rate for rooms rented
• Average Sales per Guest Forecast - Forecast based on total forecast and guest count forecast.
• Break-Even Point in Guests Served - Computes the number of guests needed to break even based on fixed costs and margin per guest.
• Contribution Margin per Guest - Computes the margin per guest based on selling price per guest and variable cost per guest.
• Contribution Marge Percent - Computes the percent of contribution margin based on the Selling Price percent and the Variable Cost percent.
• Cost of Food Consumed - Computes the cost of food based on inventory change and purchases.
• Estimated Room Expenses -  Computes the estimated annual expense of rooms based on the expense per room and number of rooms.
• Food Cost Percent for a Restaurant - Computes the percent of costs associated with food for a restaurant.
• Food Selling Price - Computes selling price based on Item Food Cost and percent allocated to food commodity.
• GOPPAR - Gross Operating Profit Per Available Room - Computes the profit based on the gross profit and the total rooms available.
• Guest Count Forecast - Guest count forecast based on last year's and an expected increase.
• Percent Sales Variance - Computes the percentage of the difference in sales in two periods. 

Resource:

• Dopson, Lea R., and David K. Hayes. Managerial Accounting for the Hospitality Industry. Hoboken, NJ: Wiley, 2009. Print.