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Breakeven Analysis Jeff's Ski Resort offers a weekend package for $1,250 per person based upon two person room occupancy. The package includes rooms for two
Breakeven Analysis Jeff's Ski Resort offers a weekend package for $1,250 per person based upon two person room occupancy. The package includes rooms for two nights, three breakfasts, three lunches and two dinners. It also includes ski lift tickets for the weekend. He estimates that of the packages he sells, 75% of them will eat breakfast, 80% will eat lunch and 95% will eat dinner A beverage will be served with every meal. Alcoholic beverages will be sold separately and it is anticipated 35% of the attendees will consume an average of three drinks for two days. His fixed operating costs for each of the operations for the weekend are as follows: Accomodation: Housekeeping $1,000 Cleaning & laundry supplies $ 100 Restaurant and Lounge: Kitchen staff $3,500 Serving staff $2,500 Bartenders $1,500 Cleaning $ 450 Ski Hill: Intructors/safety workers $1,150 Hill groomers $ 650 Other fixed costs total: Depreciation $ 700 Utilities $1,150 Realty Taxes $1,700 Average Variable Costs: Breakfasts $ 3.75 Lunches $ 7.75 Dinners $ 15.25 Beverages $ 1.10 Alcoholic Beverages $ 3.30 How many weekend packages (single) must he sell to break even? If he wanted to earn $17,000 each weekend, how many weekend packages must he sell?
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