cost Accountng, Cost Accounting

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a local government autority owns and operates a leisure center with numerous sporting facilities , residential accomodation , a cafeterial 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 60 single rooms on daily basis ,35 double room let on a daily basis at 160percent of the single room rate fc 29,900, variable cost 4 per single room per day and 6.40 per double room per day and what will be advise the authority whether an offer of £250,000 from private leisure company to operate the centere for five years is worth while, assuming that the authority uses a 10% cost of capital & operations continue as outlined what is the answer of thi quation

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