Revenue & Profit Management

1. Prepare an email (in word) that you can send to the other managers at the B&B, and John Marino seeking their input and feedback. Attach your draft budget and ensure that you provide them with enough information so that they can make a judgement of how and why you have allocated funds as you have.

Students are required to draft an email that can be sent to other managers at Marino for their input. The email must include the draft budget as an attachment and explanation for the costs and how/why they have been allocated the way that they have.

Submit this email in pdf to your assessor as if they were one of the managers. along with a memo explaining:

1. submit it to your assessor (in the role of Betsy) along with a memo explaining:

• the extra expenditure for discussion and approval (beds and kitchen appliances)
• a discussion on the internal and external factors that could have an impact on the budget. Discuss at least three internal and three external factors.

QUESTION 3

3. Provide at least three recommendations for changes to the budget that will satisfy Betsy's requests in a memo. It is your responsibility to meet the budget so you can choose to make recommendations to increase income, decrease expenditure wherever you see fit or even negotiate not to make any changes to the expenditure.

Make the changes to your budget in the accounting software. Produce a final budget report and submit it to your assessor along with a memo outlining the changes you have (or have not) made with an explanation justifying your decisions. In your justifications include the advantages and disadvantages of accepting your changes. Submit your memo and report to your assessor by the due date.

Question 4

It is September and the budget is as follows:

You as the manager and the small order cook have agreed to speak to your fruit and vegetable supplier to see if there are any possibilities of reducing the cost of your purchases. You want to reduce your delivery from 4 days per week to twice a week and rather than telling them what fruit and vegetables you want, you are requesting them to select the best quality for the cheapest price, ie the cheapest on the day.

Also as part of cost savings you have had to make the decision to move away from local suppliers of shelf items such as porridge, flour, herbs and spices, sugar, etc. Now that Costco has opened you have the option of buying in bulk. You have calculated that this will save you approximately $3,000 - $4,000 per year.

1. Draft the communication (IN WORD) with the supplier outlining your request and ask them to provide you with the best possible pricing structure. You will also need to influence their decision by reminding them that the B&B wants to stay with local producers and their quality is the best. Your communication should be formatted professionally and written clearly and in a suitable language for the audience. Submit this communication to your assessor.

EMAIL YOUR ASSESSOR AND ATTACH DOCUMENT AS A FILE

IF CORRECT CHANGE TO PDF AND UPLOAD IN MOODLE TASK D

2. Draft a communication to Betsy regarding your evaluation of the budget - how you are feeling, how in your effort to reduce expenditure, this has caused a slump in customer service, your recommendations for changes to the budget and the impact that the changes will have - positive and negative. You will need to influence Betsy so ensure you demonstrate that your month-to-date actuals are ahead of budget and how you are saving money. Include your report in your communication to Betsy.

(Students are to submit a memo outlining the recommended changes to the budget (seeking a better deal from the fruit and vegetable supplier, increasing the housekeeper's hours) and how these changes will impact the budget.)

• EMAIL YOUR ASSESSOR AND ATTACH DOCUMENT AS A FILE
• IF CORRECT CHANGE TO PDF AND UPLOAD IN MOODLE

Question 5

It's the beginning of November and the following income and expenses are for October.

Invoices received:

Receipts:

Credit Card Payments (guests):

The last two months have seen some changes. There was a major hail storm in the area which caused damage to one of the cabins. The storm caused a lot of damage and the cabin has been uninhabitable for 5 weeks across September and October. The occupancy rate has dropped to 69%. The insurance company is paying for the majority of the damage but $5,000 will need to be paid out of pocket.

1. Use the information above to update the budget in the blank cells.

2. Create a report outlining the cash flow and submit it to your assessor with an explanation of how you might recover from the deficit this month. Make at least two recommendations for cash recovery in September/October.

WRITE YOUR REPORT HERE THEN CHANGE TO PDF AND UPLOAD IN MOODLE

Student must submit a cash flow report along with an explanation for how they are going to recover from the cash deficit.

Question 5

1. What sources of information might you need to set realistic projections for the rest of the year, including finding out more information about what is coming up in the region? Make a list of at least four people or places you could seek information from.
2. Identify at least THREE solutions for the income slump. The solutions should concentrate on increasing income and revenue rather than on reducing expenses.

3. Write a memo to Betsy and the Cook at the B&B outlining the answers to the above questions and including a discussion aimed at the cook about the importance of meeting budget restrictions, what the cook should do if they are having trouble meeting the budget or find it challenging keeping relationships with suppliers. Submit your memo to your assessor in the role of Betsy.

Students must submit a memo that covers:

• Sources of information for budget preparation.
• At least three solutions to raise revenue.

Promoting the awareness of meeting budgets with the cook

WRITE MEMO HERE THEN SUBMIT IN TASK F AS A PDF IN MOODLE

MEMO: