**********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

• 1. 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.