Sunshine continental Hotel Pty Ltd. is hotel established in 1956 Sorento, Victoria near the Sorrento Ferries. They are well known for their seashore facing full serviced rooms. All their 325 rooms are one size thus they all have the same features, and that adds as an advantage among other competitors in the area

They are planning to open a new hotel in late 2019 adjacent, they want to be proactive and decide for any expenses that might be arising because of this new establishment. As a Revenue manager you are approached to evaluate factors affecting value perceptions in this industry.

Ben the owner is sure that you can help him to point out the cost drivers and evaluate management cost drivers that measure performance of the cost control and he would like to know where his business is using cost volume profit analysis

The extract of Sunshine continental Hotel Pty Ltd. is below which you should use for your analysis.

Recommendation for Cost volume Profit analysis : ( 1500 words) (15 Marks)

Recommend and explain to Ben what is cost volume profit analysis in detail and calculate the break even for the current hotel rooms and also recommend him his break even point for the rooms ( Please help with the break even point recommendation in detail )

Profit and Loss Statement for Sunshine Continental Hotel for the year ended 30th June 2019 CURRENT YEAR/ACTUAL BUDGETED YEAR 2018-2019 2018-2019 $87,750.00 $87,750.00 $97,500.00 $97,500.00 Income Rooms sales total income Expenses Bank charges Credit card commission Business insurance Marketing & Promotional Newspapers & magazines for customers Laundry/dry cleaning Cleaning & cleaning products Website Expenses Permanent employees wages Casual employee wages Superannuation $450.00 $658.13 $770.00 $2,500.00 $720.00 $665.00 $990.00 $1,775.00 $31,000.00 $17,500.00 $4,607.50 $350.00 $731.25 $770.00 $1,750.00 $600.00 $450.00 $800.00 $1,775.00 $31,000.00 $15,500.00 $4,417.50 Electricity/Gas Telephones Property Insurance General Repair & maintenance Waste removal charges Water charges Total Expenses Month Net Profit / (Loss) $6,200.00 $720.00 $560.00 $2,100.00 $660.00 $6,000.00 $77,875.63 $9,874.38 $5,800.00 $720.00 $560.00 $1,500.00 $660.00 $5,600.00 $72,983.75 $24,516.25