Given the Following Data on Hotel Check-Ins for a 6-Month

question 50

Short Answer

Given the following data on hotel check-ins for a 6-month period:

July:     70 rooms
August:     105 rooms
September:     90 rooms
October:     120 rooms
November:    110 rooms
December:     115 rooms


-What is the 3-month moving average forecast for January?

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Definitions:

Residual Income

The income that remains after deducting all required expenses and cost of capital from operating income.

Investment Centers

Segments within a company for which managers have responsibility over cost, revenue, and investment decisions.

Cost Center

A business segment whose manager has control over cost but has no control over revenue or investments in operating assets.

Responsibility Center

Any business segment whose manager has control over costs, revenues, or investments in operating assets.