decision making, Managerial Accounting

Assignment Help:
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.

Related Discussions:- decision making

Determine the proprietary ratio and equity ratio, Proprietary ratio/ equit...

Proprietary ratio/ equity ratio  Meaning: the ratio measures a relationship among proprietor's funds and the total assets. Objective: the objective of computing this ra

The cost per equivalent whole unit, During the year Leyland Company complet...

During the year Leyland Company completed 1,300 units of product. Ending inventory consisted of 400 units that were 50% complete. The total dollar cost associated with production o

Accounting concepts, implications of applying accounting concepts wrongly

implications of applying accounting concepts wrongly

Doug, based on your assumptions, calculate the cost per unit (total product...

based on your assumptions, calculate the cost per unit (total product cost on a per unit basis) under a traditional accounting system based on direct labor hours (table 1 prepared

Cost driver analysis-target costing, Cost driver analysis Cost driver...

Cost driver analysis Cost drivers are factors, which determine the costs of an activity i.e. a change in the cost driver will cause a change in the level of total cost relate

Determine a firms earnings per share, You have been asked to determine the ...

You have been asked to determine the EPS indifference EBIT* level for your firm using the following information. Under the high-leverage alternative (a D/E ratio of 1.50), the firm

[email protected], Why might managers favour this ABC system instea...

Why might managers favour this ABC system instead of the older system that allocated all MOH costs on the basis of direct? labour?

State performance budgeting according to carter performance, State performa...

State performance budgeting according to carter performance According to carter performance budgets use statement of mission goals and objectives to explain why the money is be

How does that relate to the modern epidemic on obesity, Why is corn so freq...

Why is corn so frequently used in typical American foods? In what forms does it take when being part of those foods? How does that relate to the modern epidemic on obesity?

Debentures, 500 000 debentures are in a company at a coupon value of R50 ea...

500 000 debentures are in a company at a coupon value of R50 each in issue. During each financial year, interest on these debentures is paid in arrears and in equal quarterly inst

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd