Question
A country club needs funds to remodel the main dining room. The estimated annual cost will be $50,000 for three years. The 200 members each
A country club needs funds to remodel the main dining room. The estimated annual cost will be $50,000 for three years. The 200 members each pay annual dues of $4,000. The annual cost of maintaining the golf course is $600,000 and it generates $36,000 in guests and outing revenues. The swimming pool and tennis facility cost another $30, 000 to provide good service to the members and guests. Running and maintenance of the clubhouse and other facilities cost $284,000 each year.
The foodservice facilitys annual fixed cost are $180,000. Weddings, holidays dinners and other such functions provide $90,000 in profit each year. What will be the necessary average monthly dining room guest count to cover all costs and provide the necessary funds for the remodel if the dining rooms guest check average is $19 and variable rate is .65?
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