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I wont answer this please Part A Breakeven'analysis of Green Lodge 11 (50-Marks) 1 Green-Lodge is a company operated by Adam as a summer vacation
I wont answer this please
Part A Breakeven'analysis of Green Lodge 11 (50-Marks) 1 Green-Lodge is a company operated by Adam as a summer vacation getaway in the great Arizona valley. It operates camping lodges offering accommodation and adventure trips for individuals and groups. Over the last fewyears, the average number oftourists trips was-50. The average charge per person for the cruise, including group discounts was $100. The company operates frommid-may until mid-August. On average the lodge takes 90 (adventure trips) during this period. The lodge requires a staffof6 andismanaged by the owner of the company. University students with extensive tourism experience havebeen willing to work on a daily basis of $120. They are paid only if there are any adventure trips. The lodge also provides non-alcoholic refreshments and a light-lunch. These are required daily from a local cafeteria and cost on average $20 per person. The daily operating expenses, fuel andmiscellaneous supplies average-S60 per trip. The company has a variety of annual expenses (fixed costs) including: maintenance, depreciation, marketing, licenses, Etc... Totaling approximately $73,440.5 Required: 1. Compute the revenue, variable expenses and the contribution margin foreach trip (15. marks) 2.- Compute the number oftrips Green Lodge must have each year to breakeven. (8 marks) 3. The Adam, the owner, expects a profit of $130,000 (being totalretum on his capitaland remuneration for being the manager). Using the concept of contribution margin" anda cost-volume-profit notion estimate how many trips the Lodge needs to maketo reach this objective? Is there a realistic expectation? (15 marks) 4. Prepare a contributionmargin income statement for Green Lodge assuming 100 adventure trips are being done during this penod. (12 marks)-1 a Step by Step Solution
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