Question
**********PLEASE ANSWER QUESTION 2.1 AND 2.2**************?????? 1. DETERMINE AQUATIC CENTRE OPERATING EXPENSES. Table 1: Aquatics Centre Fixed and Variable Operating Costs (per yer) Cost Year,
**********PLEASE ANSWER QUESTION 2.1 AND 2.2**************??????
1. DETERMINE AQUATIC CENTRE OPERATING EXPENSES.
Table 1: Aquatics Centre Fixed and Variable Operating Costs (per yer)
| Cost | Year, Months, or hours | Subtotal | Total |
Fixed Costs | ||||
Facility manager | $50,000 | 1 year | $50,000 | $50,000 |
Facility supervisor | $35,000 | 1 year | $35,000 | $35,000 |
Administrative overhead | S455 per month | 12 | $5,460 | $5,460 |
Chemicals | S1000 per month | 12 | $12,000 | $12,000 |
Total fixed costs |
|
|
| $102,460 |
Variable Costs | ||||
Life Guards (Full set) | $50 per hour | 3000 | $150,000 | $150,000 |
Utilities | $22 per hour | 3000 | $66,000 | $66,000 |
Front-desk staff | $10 per hour | 3000 | $30,000 | $30,000 |
Maintenance | $20 per hour | 3000 | $60,000 | $60,000 |
Total variable costs |
|
|
| $306,000 |
Total fixed and variable costs |
|
|
| $408,460 |
Demand = Facility is open 3000 hours per year
1.1. What are the Total Fixed Operating costs of the facility?
Facility manager + Facility Supervisor + Administrative Overhead +Plus Chemicals (per year)
Total fixed cost = $50,000 + $35,000 + $5460 + $12,000 = $102,460 operating
1.2. What are the Total Variable costs of the facility?
The total variable costs of operations can be calculated by
Lifeguards cost + utilities + front desk staff + Maintenace (per year)
150,000 + 66,000 + 30,000 + 60,000
Total Variable Cost $306,000
-
- What are the total operating costs?
Total operating costs = (Total fixed costs) + (total operating costs) = $102, 460 + 306,000
Total operating costs = $408,460
2. DETERMINE THE OPERATING COST FOR ONE HOUR OF POOL TIME
P = price
F = fixed costs = $102,460
V = variable costs = $306,000
C = contingency costs = 10%
N = demand
No contingency costs: P = (F + V)/N
Contingency costs: P = (F + V + C[F + V])/N
2.1. What is Unit price (operating cost) for one hour of pool time with NO contingency costs
2.2. What is Unit price (operating cost) for one hour of pool time with contingency costs. Assume a 10% contingency cost associated with the facility.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started