Question
2. Ranjha Tours is a company that specializes in tour packages throughout North America. It has recently been offering weekly tour packages which include
2. Ranjha Tours is a company that specializes in tour packages throughout North America. It has recently been offering weekly tour packages which include return flights from Toronto to Vancouver. A contract with Western Canada Air Travel was made for $1,218,210 to use their 200-seat aircraft for 10 weeks, which are always sold to full capacity. A hotel located 20 km outside of Vancouver was contracted at $150 per room, per night, based on double occupancy, plus a service charge of $6.50 per person per night. Clients would be required to pay an additional $180 in air taxes and $50 for airport transfers. Taxes are additional for all the rates. Calculate the following, before taxes: Parts a., b., c., & f. are 1 mark each; Parts d. & e. are 2 marks each a. Cost per airplane seat for the company. b. Hotel cost per person for the company. c. Total base cost per person for the company. d. Price per client, if the tour company has a profit margin of 35%. Quoted price to clients (include TGSC separately). Fibility: Good to go
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