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not required book solution please be care ful about solution other wise down voted logo VA local Government authority owns and operates a leisure centre
not required book solution please be care ful about solution other wise down voted
logo VA local Government authority owns and operates a leisure centre with numerous sporting facilities, residential accommodation, a cafeteria and a sports shop. The summer season lasts for 20 weeks including a peak period of 6 weeks corresponding to the school holidays. The following budgets have been prepared for the next summer season: Accommodation: 60 single rooms let on a daily basis. 35 double rooms let on a daily basis at 160% of the single room rate. Room rate: Fixed costs *29,900. Variable costs * 4 per single room per day and 76.40 per double room per day 9& Sports centre: Residential guests each pay 2 per day and casual visitors 3 per day for the use of facilities. ng 500.00 5.20 50.00 0.80 3.60 0.00 Axed costs *15.500. Sports Shop: Estimated contribution 31 per person per day. Fixed costs 8,250. 0.00 Cafeteria: 0.00 Estimated contribution 1.50 per person per day. Fixed costs 12.750. During the summer season the centre is open7 day a week and the Following activity levels are anticipated. Double rooms fully booked for the whole season. Single rooms fully booked for the peak period but at only 80% of Capacity during the rest of the season. 30 casual visitors per day on average. You are required to: la) Calculate the charges for single and double rooms assuming that the authority wishes to make a 10.000 profit on accommodation. (6) Calculate the anticipated total profit for the leisure centre as a whole for the season. Icl Advise the authority whether an offer of 2,50,000 form a private leisure company to operate the centre for five years is worth while, assuming that the authority uses a 10% cost of capital and operations continue as outlined aboveStep by Step Solution
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