A local authority, whose area includes a holiday resort situated on the east coast, operates, for 30
Question:
Weekly costs incurred by the host authority are:
Seasonal staff supervise and carry out the necessary duties at the home at a cost of £11 000 for the 30-week period. This provides staffing sufficient for six to ten guests per week but if eleven or more guests are to be accommodated, additional staff at a total cost of £200 per week are engaged for the whole of the 30-week period.
Rent, including rates for the property, is £4000 per annum and the garden of the home is maintained by the council's recreation department which charges a nominal fee of £1000 per annum.
You are required to:
(i) Tabulate the appropriate figures in such a way as to show the break-even point(s) and to comment on your figures;
(ii) Draw, on the graph paper provided, a chart to illustrate your answer to (b)(i) above.
Step by Step Answer: