As a future leader in Hospitality and Tourism, you will use accounting to make better
business decisions. Choose one type of Hospitality and Tourism business that you might
manage, for example, hotel, restaurant, airline, event company, cruise company etc. Apply
accounting decision-making concepts with your company to structure your Report:
1. Use the Balanced Score Card approach to present key business assumptions and
justify your choices by research and analysis undertaken, including the management
of all Triple Bottom Line initiatives.
2. Prepare a Sales budget for two (2) products, Direct materials budget, Direct labour
budget, Overhead budget, Selling expenses budget and Administration expenses
budget for your business based on the given numbers.
3. Prepare an Income Statement in appropriate format for your business.
4. Calculate and evaluate the Weighted Average Contribution Margin (WACM).
5. Calculate and evaluate the Contribution Margin Ratio (CMR).
6. Calculate and evaluate the sales volume in units and sales dollars at breakeven point.
7. Calculate and evaluate the Operating Leverage and Safety Margin, carefully
explaining what this means in terms of the risk of your business.
8. Critically evaluate the best ways that your business can increase its profitability.
Discuss critically key results that would impact on your future decision-making

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