Question

A 286-room upscale hotel supplies each guestroom with a 1 oz. bar of facial soap, packed 288 per case, and a 2 oz. bar of bath soap, packed 144 per case. The ending inventory for the month of February was 8 cases of facial soap (288 per case) and 12 cases of bath soap (144 per case). Twelve (12) cases of facial soap (288 per case) and fifteen (15) cases of bath soap (144 per case) were purchased and received in March, while the hotel ended March with seven (7) cases of facial soap (288 per case) and ten (10) cases of bath soap. 6,297 room nights (71.0\% occupancy) were sold in March and 5,842 room nights are projected for April (68.1\% occupancy). If the cost of a case of bath soap (packed 144 per case) is $42.18 per case, what is the cost per occupied room (CPOR) for bath soap?

1 . $0.18
2 . $0.11
3. $0.13
4. $0.08

Answer 1

The CPOR for bath soap is calculated by dividing the total cost of the soap used in March by the number of room nights sold, which comes out to approximately $0.11 per occupied room.

Step-by-step explanation:

To calculate the cost per occupied room (CPOR) for bath soap, we will need to know the number of bath soaps used and the total cost of those soaps. The hotel begins with 12 cases of bath soap and receives another 15, totaling 27 cases for the month of March. By the end of March, the hotel has 10 cases left, so they have used 17 cases (27 cases - 10 cases = 17 cases).

Each case contains 144 bars of bath soap, so 17 cases equal 2448 bars of soap (17 cases x 144 bars/case). Since 6,297 room nights were sold in the month, and we presume each room used one 2 oz. bar of bath soap per night, the total cost of soap used in March is the number of cases used (17) multiplied by the cost per case ($42.18).

The total cost for 17 cases is $717.06 (17 cases x $42.18 per case). To find the CPOR, we divide the total cost by the number of room nights sold, resulting in a CPOR of approximately $0.11 per occupied room ($717.06 / 6297 room nights).