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ILLUSTRATION 65 A Guest Services Ltd. operates for 30 weeks each year. Following financial data are available. (i) It can accommodate minimum 6 guests and
ILLUSTRATION 65 A Guest Services Ltd. operates for 30 weeks each year. Following financial data are available. (i) It can accommodate minimum 6 guests and upto 15 guests at a charge of $100 per week; (ii) Weekly variable cost amounts to $43 per guest; (iii) As long as 10 guests are accommodated, the fixed cost of supervision would be $11,000 for 30 weeks. However, in case guests exceed 10 No's additional fixed cost of $200 per week will have to be incurred for the 30-week period. (iv) Rent charge is $4,000 per annum and $1,000 per annum is paid to outside contractor for general maintenance. You are required to tabulate the figures to find out the Break-Even Points
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