Question
Required information Skip to question The City Museum (TCM) collects and displays historical artifacts from the local area. One of its services is dedicated tours.
Required information Skip to question The City Museum (TCM) collects and displays historical artifacts from the local area. One of its services is dedicated tours. TCM offers dedicated tours to two groups: local students and donors. TCM has two coordinators for these toursone for the student tours and one for the donor tours.
Data for the quarter on the two groups follow.
Student Tours Donor Tours Total
Number of visitors 1,500 750 2,250
Number of tours 75 90 165
The operational costs associated with the tours have been collected and are presented in the following table.
Refreshments, information, and audio guides | $ | 27,000 | |
Tour leaders salaries and benefits | 24,750 | ||
Coordinator salaries and benefits (@ $24,750 per coordinator) | 49,500 | ||
Total | $ | 101,250 | |
Required:
a. Compute the unit (per visitor) costs for the two tour types (student and donor) assuming TCM uses the current cost system.
b. Compute the unit (per visitor) costs for the two tour types (student and donor) assuming TCM adopts an ABC system.
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