Final answer:
To calculate the operating efficiency ratio, we sum all revenue streams (Rooms, Food & Beverage, and Telecommunications) to find the total revenue, which is $880,000. We then divide this by the total undistributed operating expenses of $313,000, giving us an operating efficiency ratio of 2.81.
Step-by-step explanation:
To calculate the operating efficiency ratio, you need to compare the total revenue to the undistributed operating expenses. The total revenue is the sum of Rooms Revenue, Food & Beverage Revenue, and Telecommunications Revenue, while the total undistributed operating expenses are given.
The total revenue is:
- Rooms Revenue: $646,000
- Food & Beverage Revenue: $200,000
- Telecommunications Revenue: $34,000
Adding these together gives:
Total Revenue = $646,000 + $200,000 + $34,000 = $880,000
Now, we subtract the total undistributed operating expenses from the total revenue:
Operating Efficiency Ratio = Total Revenue / Total Undistributed Operating Expenses = $880,000 / $313,000
Operating Efficiency Ratio = 2.81 (rounded to two decimal places).