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Bali Adventure Thailand Discovery Malaysian Orienteering Question 2 follows: Number of packages sold 10 Number of people per package 5 Revenue per person 518 000 Direct cost per package: $5 000 2 000 Tour leader Tour assustant 28 000 Air travel Accommodation . . 15 000 Equrpment hire Meals 4 000 18 000 follows: Asian Adventure Holidays offers a series of holiday packages aimed at families, seniors and corporate groups. The nancial controller. Jack Tallis. is preparing for the annual board meeting and is concerned about the loss that the business sustained in the past year. He has examined the prots for each of the three departments of the business~family, seniors and corporate-and it seems that the corporate department is the source of the problem. Jack has asked you to assist him to look more closely at the three packages offered by the corporate department to see which holiday packages are yielding prots and which are not The three packages are to Thailand, Malaysia and Indonesia. The sales and direct costs of each corporate package for last year are as 20 $12 000 $12 000 3000 30000 26000 15000 To calculate the protability of each package. a proportion of the overhead costs of running the corporate department needs to be allocated to the three packages. Jack has suggested that these costs could be allocated to each package in proportion to actual sales revenue For last year these overhead costs were as 1 pts 10 514000 $9000 6000 32000 24000 9000 8000 Salaries $200 000 Phone 2 000 Depreciation on equipment 5 000 Utilities 2 000 Rent and property taxes 9 000 Other department costs 12 000 Total $230 000 Required: 1. Calculate the profit per package and the total profitability of each of the three corporate packages. 2. Compare the profitability of the three corporate packages. 3. Do you consider that the allocation of the corporate department overhead to packages using actual sales revenue is appropriate? Can you suggest a better method? 4. Suggest what actions the company could take in regard to the three corporate packages. Edit View Insert Format Tools Table 12pt v Paragraph B I U A v Q V T V Q V V QV DV SV EVE S TO BV VG