What was the gross profit outcome for 'Your Hotel 2025'?

• A. 25.0% (on target)
• B. 23.3% (below target)
• C. 28.5% (exceeded)
• D. 21.5% (below target)

Answer: (B)

Gross profit margin shows how much of every revenue dollar the hotel keeps after direct costs. It’s compared to a budgeted target to judge performance. The hotel’s margin here is 23.3%, which is below the target margin, meaning the hotel generated less gross profit per dollar of revenue than planned. If the target were 25.0%, they’d be on target; 28.5% would exceed it, and 21.5% would be below target, with a larger shortfall. So the outcome is that gross profit underperformed relative to the plan.