Question
Benedict (Tours) Limited are considering investing in UK tours around the Lake District. This will be aimed at couples. It will consist of a 5
Benedict (Tours) Limited are considering investing in UK tours around the Lake District. This will be aimed at couples. It will consist of a 5 day tours, and guest will stay at the best hotels. It will generate a contribution, of 95 per guest. There will be monthly fixed costs of 11,500. The number of potential guests, and therefore the income from the project is uncertain. A marketing company has done some primary research and on the basis of this work come up with the following estimates for the monthly demand in the first year; Number of guests Probability 130 0.10 150 0.30 170 0.40 190 0.20 What is the expected monthly profit; a) 164 b) 4,080 c) 6,580 d) 15,580
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