Assume that appropriate general trend index numbers for the catering service sales revenue and its food costs were as follows for the six periods referred to in P3.12.
A motel had the following annual sales revenue and average room rate figures for the last five years. During this five-year period, there were no changes in the number or type of rooms available, and the type of clientele remained the same.
Prepare index numbers from the average room rates. Use the index numbers identified to convert the annual sales revenue to current dollars. After the conversion is completed, comment on the results of your analysis.
