Question $3$

Breakeven Analysis

$40$ marks

Jeff's Ski Resort offers a weekend package for $$1,100$ per person

The package includes rooms for two nights, three breakfasts, three lunches and two dinners. It also includes ski lift tickets for the weekend.

He estimates that of the packages he sells, $75\%$ of them will eat breakfast, $80\%$ will eat lunch and $95\%$ will eat dinner

A beverage will be served with every meal.

Alcoholic beverages will be sold separately and it is anticipated $35\%$ of the attendees will consume an average of three drinks for two days.

His fixed operating costs for each of the operations for the weekend are as follows:

$\backslash$table$[[$Accomodation:$,$wor$],[$Housekeeping$,$$$,1\mathrm{.}100],[,$Cleaning & & laundry supplies,$$,100],[$Restaurant and Lounge:,Kitchen staff,$$,4,000],[$Serving staff,$$,2,500],[$Bartenders$,$$$,1,500],[$Cleaning$,$$$,500],[$Ski Hill:,$(1),,],[$Intructors$/$safety workers,$$,1,150],[$Hill groomers,$$,700],[$Other fixed costs total:,Depreciation,$$,700],[$Utilities$,$$$,1,150],[$Realty Taxes,$$,1,700],[$Average Variable Costs:,Breakfasts,$$,4\mathrm{.}00],[$Lunches$,$$$,8\mathrm{.}00],[$Dinners$,$$$,15\mathrm{.}00],[$Beverages$,$$$,1\mathrm{.}20],[$Alcoholic Beverages,$$,3\mathrm{.}30]]$