THM question: Total Hotel Management Question. A Hotel in Manchester called the Inglis Budget at Salford quays gets 12 bookings a day on average for four nights per booking and the average night costs £60 a night. What do they earn per day? What do they earn per day on bookings? If they get 70 orders per day on food at £15.00 per day, what do they earn per day on food? If the Vat collection is based on 20% what is the VAT earned per day, per week or per MONTH on all transactions? What is the VAT earned per day of the rate is 49%?

THM question:  Total Hotel Management Question. A Hotel in Manchester called the Inglis Budget at Salford quays gets 12 bookings a day on average for four nights per booking and the average night costs £60 a night. What do they earn per day? What do they earn per day on bookings? If they get 70 orders per day on food at £15.00 per day, what do they earn per day on food? If the Vat collection is based on 20% what is the VAT earned per day, per week or per MONTH on all transactions?  What is the VAT earned per day of the rate is 49%?

 Here are the step-by-step calculations and answers for the Total Hotel Management (THM) question:

1. Earnings Breakdown

Daily Booking Revenue

Each booking generates 4 nights of room stay at £60.00 per night:

• Value per booking: 4 \text{ nights} \times £60.00 = £240.00
• Total Daily Booking Revenue: 12 \text{ bookings} \times £240.00 = £2,880.00

Daily Food Revenue

• Total Daily Food Revenue: 70 \text{ orders} \times £15.00 = £1,050.00

Total Combined Revenue per Day

• Total Daily Revenue: £2,880.00 \text{ (Bookings)} + £1,050.00 \text{ (Food)} = £3,930.00

2. VAT Calculations (at 20%)

Depending on whether your course treats prices as Tax-Exclusive (VAT added on top) or Tax-Inclusive (VAT built into the price), both common interpretations are detailed below:

Method A: Tax-Exclusive (VAT added to gross sales)

• VAT per Day: £3,930.00 \times 20\% = £786.00
• VAT per Week (7 days): £786.00 \times 7 = £5,502.00
• VAT per Month (30 days): £786.00 \times 30 = £23,580.00 (or £23,907.50 based on an average 30.42-day month)

Method B: Tax-Inclusive (VAT extracted from gross total)

• VAT Fraction: \frac{20}{120} = \frac{1}{6}
• VAT per Day: £3,930.00 \div 6 = £655.00
• VAT per Week (7 days): £655.00 \times 7 = £4,585.00
• VAT per Month (30 days): £655.00 \times 30 = £19,650.00 (or £19,922.92 based on an average 30.42-day month)

3. VAT Collected per Day at 49% Rate

• Tax-Exclusive Method: £3,930.00 \times 49\% = £1,925.70
• Tax-Inclusive Method: £3,930.00 \times \left(\frac{49}{149}\right) = £1,292.42

Summary Table

Metric	Tax-Exclusive (Added)	Tax-Inclusive (Built-in)
Earnings per Day (Bookings)	£2,880.00	£2,880.00
Earnings per Day (Food)	£1,050.00	£1,050.00
Total Daily Revenue	£3,930.00	£3,930.00
VAT per Day (20%)	£786.00	£655.00
VAT per Week (20%)	£5,502.00	£4,585.00
VAT per Month (20% / 30-day)	£23,580.00	£19,650.00
VAT per Day (49%)	£1,925.70	£1,292.42