Question: A new entrepreneur wants to estimate the costs of an offsite team-building event for her 14 employees. She was able to gather the following information

A new entrepreneur wants to estimate the costs of an offsite team-building event for her 14 employees. She was able to gather the following information on a 3-day program in which she is interested. Assume there will 100% participation in all activities. Use the unit technique to estimate the total Accommodation costs of this event.


Cost Elements

Cost Rate

Details

Transportation costs

Van rental of $109 pay day per 14 people.

The van gets 16 mpg and the gas is $3.10 per gallon.

Insurance costs $24 per person for 3 days.

A van rental for 3 days

The site is 60 miles away (one-way).

Accommodation costs

A double-bed room holds 2 people and has a rate of $119 per night per room.

Meals are $45 per day per person.

A conference room costs $180 per day for a karaoke night

Double-bed rooms for 3 nights

Meals for 3 days

A conference room for one karaoke night in this 3-day program

Activities costs

A paintball game costs $55 per person.

A night journey and a day hike, each costs $35 per person.

A problem-solving and team-building exercise costs $160 per 14 people.

A karaoke night costs $230 per 14 people for equipment and a DJ.

One paintball game, one night journey, one day hike, one problem-solving and team-building exercise, and one karaoke night in this 3-day program





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