Average Cost per Unit

Average Cost per Unit

Postby LBESME@ » Thu Sep 24, 2015 3:12 pm

I have 5 different hotel units costing the following per night:
Unit A 145.00/night 48 rooms
Unit B 155.00/night 24 rooms
Unit C 165.00/night 48 rooms
Unit D 175.00/night 82 rooms
Unit E 200.00/night 30 rooms

How do you determine the cost per unit for all 232 rooms? I don't want it averaged out, I am looking more for a weighted cost?
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Re: Average Cost per Unit

Postby Guest » Fri Sep 25, 2015 2:38 pm

Work in units of NightRooms .....multiply the cost per night by number of rooms in each unit, add it all up and divide by 232
145 x 48 = 6960
155 x 24 = 3720
165 x 48 = 7920
175 x 82 = 14350
200 x 30 = 6000

add them all up gives....
232 room at total cost of 38950
Divide cost by 232 gives 38950 / 232 = 167.89 per room per night
This is the average cost
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