Spinnaker Museum of Sailing (SMS) is a popular tourist site in a coastal town. The museum...

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Spinnaker Museum of Sailing (SMS) is a popular tourist site in a coastal town. The museum boasts a large collection of both current sailing exhibits and historical displays focused on ocean exploration and maritime adventures. SMS, like many museums, is a not-for- profit organization, but it charges for admission and operates a highly-rated book shop on-site. The museum has several operating divisions. One of them, the Visitor Division, is responsible for activities related to visits from the public, such as collecting admission fees, providing coat and bag check service, operating the book store, and so on. The museum's financial director has provided the forecasted cost of the Visitor Division for the upcoming year, beginning July 1. SMS expects 250,000 visitors in the next fiscal year. Labor (variable) Miscellaneous (variable) Supervision (fixed) Miscellaneous (fixed) $ 2,550,000 1,475,000 700,000 665,000 The average admission fee is $30 per visitor and the average visitor spends 2.5 hours in the museum. The museum director has received a proposal from Gitre Operations to provide staff and some other services for the Visitor Division. Gitre has proposed a fee of $18 per visitor. If SMS accepts the proposal from Gitre, SMS would avoid all labor cost and 60 percent of the variable miscellaneous costs. The museum would also save 70 percent of the supervision costs and 40 percent of the miscellaneous fixed costs. Required: a1. What are the costs of staffing interally versus accepting the Gitre proposal? a2. Do you recommend that SMS accept the proposal from Gitre to provide staff and other services to the Visitor Division? b. The marketing director informs the museum director that based on the latest economic conditions, the museum now is forecasting only 150,000 visitors for the upcoming fiscal year. b1. What are the costs of staffing interally versus accepting the Gitre proposal? b2. Do you recommend that SMS accept the proposal from Gitre to provide staff and other services to the Visitor Division? c. At what forecasted attendance level will SMS be indifferent between staffing the Visitor Division internally and accepting the proposal from Gitre Operations? d. The museum director is confident that the museum will attract 250,000 visitors next year. The Board of Directors at SMS is encouraging the director to negotiate a lower fee with Gitre Operations. With 250,000 visitors, what fee would make SMS indifferent between staffing the Visitor Division internally and accepting the proposal from Gitre Operations? Spinnaker Museum of Sailing (SMS) is a popular tourist site in a coastal town. The museum boasts a large collection of both current sailing exhibits and historical displays focused on ocean exploration and maritime adventures. SMS, like many museums, is a not-for- profit organization, but it charges for admission and operates a highly-rated book shop on-site. The museum has several operating divisions. One of them, the Visitor Division, is responsible for activities related to visits from the public, such as collecting admission fees, providing coat and bag check service, operating the book store, and so on. The museum's financial director has provided the forecasted cost of the Visitor Division for the upcoming year, beginning July 1. SMS expects 250,000 visitors in the next fiscal year. Labor (variable) Miscellaneous (variable) Supervision (fixed) Miscellaneous (fixed) $ 2,550,000 1,475,000 700,000 665,000 The average admission fee is $30 per visitor and the average visitor spends 2.5 hours in the museum. The museum director has received a proposal from Gitre Operations to provide staff and some other services for the Visitor Division. Gitre has proposed a fee of $18 per visitor. If SMS accepts the proposal from Gitre, SMS would avoid all labor cost and 60 percent of the variable miscellaneous costs. The museum would also save 70 percent of the supervision costs and 40 percent of the miscellaneous fixed costs. Required: a1. What are the costs of staffing interally versus accepting the Gitre proposal? a2. Do you recommend that SMS accept the proposal from Gitre to provide staff and other services to the Visitor Division? b. The marketing director informs the museum director that based on the latest economic conditions, the museum now is forecasting only 150,000 visitors for the upcoming fiscal year. b1. What are the costs of staffing interally versus accepting the Gitre proposal? b2. Do you recommend that SMS accept the proposal from Gitre to provide staff and other services to the Visitor Division? c. At what forecasted attendance level will SMS be indifferent between staffing the Visitor Division internally and accepting the proposal from Gitre Operations? d. The museum director is confident that the museum will attract 250,000 visitors next year. The Board of Directors at SMS is encouraging the director to negotiate a lower fee with Gitre Operations. With 250,000 visitors, what fee would make SMS indifferent between staffing the Visitor Division internally and accepting the proposal from Gitre Operations?