Roberta Resort is located in a prime location within a shopping mall and restuarants and other offices. Room rental rate $$360.$ per night Variable cost per occupied room $$120.$ per room Number of days resort open $365$ days per week Number of doudle rooms $30$ Budgeted occupency rate $70\%$ Budgeted fixed cost $$600,000.$ During the first quarter of the year the room occupency rates are significantly below th levels expected at other timed of the year with the Roberta Resort expecting to sell $900$ occupied room nights during first quarter. An option to improve profitability is beiong considered, including closing all the resort for the duration of the first quarter or adapting the possible project. Project $1-$ Sea and land tours packages For quarter $1$ management would offer guests who pay for $2$ consecutives nights a special rate of $$67\mathrm{.}50$ per room per night and a pair of sea and land tour tickets for a payment of $$100.$ The original tour tickets cost the resort $$95.$ a pair. The Resort fixed cost specific to this project $($marketing and admin$)$ are budgeted at $$20,000.$ Compute the breakeven number of occupied rooms nights. Calculate the margin of safety as a percentage for rooms avaliable per year. Ignore the proposed project and calculate the budgeted profit or loss for the first quarter and explain whether the resort should close for the duration of the quarter. Refer to the original data$-$ The CEO of the Resort thinks that a new advertising drive could help revenues. The new proposal is ti increase variable cost by $$40.$ per room. Assuming no other charges, calculate the number of rooms would have to be provided in the first quarter to achieve a target profit of $$400,000$ if fixed cost decreased by $$30,000.$ Advise management if the resort should accept or reject the option. Define the terms conversion cost and prime cost. Identify $2$ main differences between process costing and job order costing.