Week 8: EOC Quiz 8, Question 4

a. What were the total revenues in October 2009 and October 2010?

b. What was the GOP in dollars in October 2009 and October 2010?

c. What was the percentage of GOP to total revenues in October 2009 and October 2010?

d. What was the flow-through percentage achieved by Santi’s hotel? What is your assessment of that percentage?

Answers: 

a. Oct. 2009 revenues =$545,000

Oct 2010 revenues $583,000 

b.  Oct 2009 GOP= $162,000

Oct 2010 GOP= $184,550

c.  Oct 2009 GOP%= 29.72%

Oct 2010 GOP %= 31.66% 

d.  Flow Through % = 59.34% Flow through is high (over 50%) and it can reflect efficiency on the part of management in converting additional revenues into additional profits.