Activity 1.2 Direction: Write T if the statement is correct and F if the statement is incorrect.
1. Profit margin is acquired by adding the product price to the product cost.
2. The Average Daily Rate (ADR) is affected by different room rates offer in a hotel
3. The cost of labor, taxes, raw materials, utility expenses, and other payables comprises to the amount of product cost.
4. Percentage of occupancy is determined through the room revenues divided by the number of rooms available multiply by 100.
5. Product price pertains to the cost of food menu or room set by the hotel after calculating the product cost plus the profit margin.
6. There is a standard computation of profit margin applied for every hotel and other lodging industries.
7. Average daily rate (ADR) is the hotel's expected number of rooms to be sold at the end of the day.
8. Food servicing in the hotel has always the highest profit share as compared to the room revenues.
9. One way of determining the profitability and stability of hotel operations is by preparing different statistical reports.
10. Reservation report determines the percentage of room occupancy in the hotel for given period of time.​