Analysis of Contribution Margin to Support Business Decision Making: A Case Study of A Hotel in Muang District, Surat Thani Province

Abstract

      The research on Analysis of Contribution Margin to Support Business Decision Making: A Case Study of A Hotel in Muang District, Surat Thani Province aimed to study the accounting system and data, analyzing the contribution margin to support the management's decision making. It was a participatory practice research. The research tool uses were document flowchart and data flow diagram.
     The research results were found that the operation process, when the customer came to stay, the hotel would had customer registered and collected the deposit and refund to the customer when the guest returning the room, then deducting the room cost and other service charges, such as service at a hotel restaurant. When the customer returned the room, the maid would check the items in the refrigerator and notified the front to charge the customer if they consumed the items. The analyzing of the contribution margin found that variable cost was 7%, the contribution margin was 93%, and fixed cost 83%, of total income. The fixed cost were regular salary and depreciation of buildings and equipment. Research has shown that hotel washing and drying equipment has leftover capabilities. If such abilities can be used for washing and drying services for small hotels nearby will generate additional income without increasing fixed costs. The gross profit analysis showed that laundry reception increased only 10 percent from the work being done. This will increase the net profit of the rooms division by 7%. This information helps executives make business decisions for the business.