Jeff's Ski Resort offers a weekend package for $1,200 per person based upon two-person room occupancy. The
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Jeff's Ski Resort offers a weekend package for $1,200 per person based upon two-person room | |||
occupancy. | |||
The package includes rooms for two nights, three breakfasts, three lunches, and two dinners. | |||
It also includes ski lift tickets for the weekend. | |||
He estimates that of the packages he sells, 90% of them will eat breakfast, 80% will eat lunch | |||
and 98% will eat dinner | |||
A beverage will be served with every meal. | |||
Alcoholic beverages will be sold separately and it is anticipated 40% of the attendee's will | |||
consume an average of three drinks for two days. | |||
His fixed operating costs for each of the operations for the weekend are as follows: | |||
Accommodation: | |||
Housekeeping | $ 1,000 | ||
Cleaning & laundry supplies | $ 50 | ||
Restaurant and Lounge: | |||
Kitchen staff | $ 3,500 | ||
Serving staff | $ 2,200 | ||
Bartenders | $ 1,500 | ||
Cleaning | $ 300 | ||
Ski Hill: | |||
Instructors/safety workers | $ 1,100 | ||
Hill groomers | $ 640 | ||
Other fixed costs total: | |||
Depreciation | $ 700 | ||
Utilities | $ 1,100 | ||
Realty Taxes | $ 1,500 | ||
Average Variable Costs: | |||
Breakfasts | $ 3.50 | ||
Lunches | $ 7.50 | ||
Dinners | $ 15.50 | ||
Beverages | $ 1.10 | ||
Alcoholic Beverages | $ 3.25 | ||
How many weekend packages (single) must he sell to break even? | |||
If he wanted to earn $20,000 each weekend, how many weekend | |||
packages must he sell? |
Related Book For
College Physics
ISBN: 978-0495113690
7th Edition
Authors: Raymond A. Serway, Jerry S. Faughn, Chris Vuille, Charles A. Bennett
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