Variable costs

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Structure of the costs groups

In your operating review at the tab results there are three major groups of costs.

As you can see in this example above which shows the operating review of a demo team after four years:

• the fixed costs have stayed the same during all four years, the fixed depreciation costs are one of them.
• the variable costs depend on the occupancy rate like laundry: the more rooms occupied the more laundry.
• the costs team decisions, will depend of course on the decisions the team took during the years.

Overview of total of the variable costs

Let's check the variable costs, as they looked like at the moment you take over: in the picture the grey area. In the table underneath the green numbers.

Costs
Costs: fixed	Depreciation costs of existing assets	€ 525,187	34.64%
	Fixed staff costs	€ 550,271	36.29%
	Costs of premises	€ 390,473	25.75%
	Insurance & interest costs	€ 50,012	03.29%
Total fixed costs		€ 1,515,943	100%	62.36%
Costs: variable	Variable staff costs	€ 355,170	38.95%
	Laundry costs	€ 118,390	12.94%
	Cleaning costs	€ 236,780	25.88%
	F&B purchase costs	€ 204,312	22.33%
Total variable costs		€ 914,652	100%	37.63%
Costs: team decisions	Marketing costs	€ 0	00.00%
	Extra staff rewarding costs	€ 0	00.00%
	Extra depreciations costs	€ 0	00.00%
	Market research costs	€ 0	00.00%
	Other costs	€ 0	00,00%
Total team decisions costs		€ 0	100%	00.00%
Total all costs		€ 2,430,595	€ 2.430.595	100%

You can't influence these variable costs, but they will vary depending on the number of guests-bookings you have in the hotel. They will be automatically calculated related to the occupancy rate and visible on your operational review. They make up 37.63% of the total costs as you take over.

• More on this in Operating review.

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Emerald Forest Hotel offering an emerald hotel experience! | Run your own hotel in this management simulation.