QUESTION $1(17$ marks$)$

Question a

A hotel can accommodate $500$ tourists maximum per week and operates during the year without break.

The weekly fees per tourist are for extra special package $3500,$ special package $2800,$ normal package $2100,$ basic package $1400$ euros. The budgeted occupancy is $55\%$ for extra special package, $65\%$ for special package,$75\%$ for normal package and $85\%$ for basic package. There are four levels of direct labor costs $500,700,900$ and $1100$ euros and four levels of other variable costs of $300,500,600$ and $700$ euros.

Required

i$.$ Show budgeted contribution for each possible scenario $(8$ marks$)$

ii$.$ Using Maximax, Minimax and Minimax Regret decision rules, design the strategy of the company regarding fees charged $(3$ marks$)$

Question b

Describe the financial and non$-$financial performance measures a company can use in order to evaluate its performance $(2$ marks$)$

Question c

Describe the operation of an environmental management system $(2$ marks$)$

Question d

Explain the nominal rate of interest, the real rate of interest and the effective annual rate of interest.

$(2$ marks$)$