Palmyra Beach Hotel is a small Boutique hotel in the South of Cyprus. The hotel has...

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Palmyra Beach Hotel is a small Boutique hotel in the South of Cyprus. The hotel has 15 rooms and during the summer period the hotel is always 80% occupied. The hotel charges 120€ per night off-season and 150€ per night in the summer period (2 months or 62 days). This price includes, breakfast and dinner. The hotel employs 1 concierge, 1 desk clerk and 2 members on its cleaning staff. All staff members are paid a fixed salary and the cost to the hotel is 2,000€ per staff member per month. The manager receives 10% of the sales revenues as a salary. There is a budgeted cost per room per night for cleaning products, laundry, toiletries and food of 55€. This cost is constant the whole year, but 10€ higher in summer due to an increase in demand for tropical fruit and drinks by guests. The costs for entertainment are 5€ per guest and the costs for maintenance and cleaning are fixed at 2000€ per month. Required: a. Explain in your own words how you would calculate the sales volume variance for the summer if the only change that occurred was a change in occupancy. (you can use fictitious numbers to clarify your point if needed). b. Explain in your own words how you would calculate the sales price variance for the summer if the only change that occurred was a change in selling price. (you can use fictitious numbers to clarify your point if needed). c. What is the impact on profit if the price is not increased during summer? You can assume a 10% increase in occupancy if the price is not increased. Palmyra Beach Hotel is a small Boutique hotel in the South of Cyprus. The hotel has 15 rooms and during the summer period the hotel is always 80% occupied. The hotel charges 120€ per night off-season and 150€ per night in the summer period (2 months or 62 days). This price includes, breakfast and dinner. The hotel employs 1 concierge, 1 desk clerk and 2 members on its cleaning staff. All staff members are paid a fixed salary and the cost to the hotel is 2,000€ per staff member per month. The manager receives 10% of the sales revenues as a salary. There is a budgeted cost per room per night for cleaning products, laundry, toiletries and food of 55€. This cost is constant the whole year, but 10€ higher in summer due to an increase in demand for tropical fruit and drinks by guests. The costs for entertainment are 5€ per guest and the costs for maintenance and cleaning are fixed at 2000€ per month. Required: a. Explain in your own words how you would calculate the sales volume variance for the summer if the only change that occurred was a change in occupancy. (you can use fictitious numbers to clarify your point if needed). b. Explain in your own words how you would calculate the sales price variance for the summer if the only change that occurred was a change in selling price. (you can use fictitious numbers to clarify your point if needed). c. What is the impact on profit if the price is not increased during summer? You can assume a 10% increase in occupancy if the price is not increased.