Calculate the total profit for the leisure center, Cost Accounting

A local government authority owns and operates a leisure centre with numerous sporting facilities, residential accommodation, a cafeteria and a sports shop. The summer season lasts for 20 weeks including a peak period of six weeks corresponding to the school holidays. The following budgets have been prepared for the next summer season:

Accommodation

60 single rooms let on a daily basis.

35 double rooms let on a daily basis at 160% of the single room rate.

Fixed costs $29,900

Variable costs $4 per single room per day and $6.40 per double room per day.

Sports Centre

Residential guests each pay $2 per day and casual visitors $3 per day for the use of facilities. Fixed costs $15,500

Sports Shop

Estimated contribution $1 per person per day.

Fixed costs $8,250

Cafeteria

Estimated contribution $1.50 per person per day.

Fixed costs $12,750

During the summer season the centre is opened seven days a week and the following activity levels are anticipated:

Double rooms fully booked for the whole season.

Single rooms fully booked for the peak period but at only 80% of capacity during the rest of the season.

30 casual visitors per day on average.

Required:

a) Calculate the charges for single and double rooms assuming that the authority wishes to make a $10,000 profit on accommodation.

b) Calculate the anticipated total profit for the leisure centre as a whole for the season assuming that the rates calculated in (a) above were used for accommodation.

Posted Date: 2/14/2013 7:17:55 AM | Location : United States







Related Discussions:- Calculate the total profit for the leisure center, Assignment Help, Ask Question on Calculate the total profit for the leisure center, Get Answer, Expert's Help, Calculate the total profit for the leisure center Discussions

Write discussion on Calculate the total profit for the leisure center
Your posts are moderated
Related Questions
Vintage Auto Company manufactures parts to order for antique cars. Vintage Auto makes everything from fenders to engine blocks. Each customer order is treated as a job. Vintage Aut

Explain:- Q Why is the statement of cash flows useful? Q. How is it possible for a company to suffer a net loss for a given year, yet produce a positive net cash flow from opera

need help to achieve my assignment

Analysis of stockholders equity: Star Corporation issued both common and preferred stock during 19X6. The stockholders' equity sections of the company's balance sheets at the

As the Junior Bank Clerk of a business, one of your monthly tasks is to prepare the bank reconciliation statement. At the month ending 31 January 2012, the bank statement has be


how to calculate total costing in weighted average method

1. A company is considering a project that requires an initial investment of $100 million and will pay $20 million of each of the next 10 years, and nothing thereafter. The company

behavioral aspect of standard costing

The following details were extracted from the standard cost card of a component:       Raw Materials              2.82 Kgs @ Rs.4.80 Kg.     Direct Labour            Type I   6