Question
The Sand Beach Resort is a hotel situated in a French island in the Caribbean. Its owner, M. Marcel examines the current situation with a
The Sand Beach Resort is a hotel situated in a French island in the Caribbean. Its owner, M. Marcel examines the current situation with a consultant. The hotel is renting twin-bed rooms with full board. Prices are the same whether the room is for a single person or two and is 600 a week. The Sand Beach Resort has 100 rooms and is open 52 weeks a year. The consultant provides M. Marcel with the following information regarding activity last year: Turnover: 3 640 weeks sold 600 a week = 2 184 000 Depreciation: 460 000 Overhead (reception, administration, animation) : 300 000 Procurement (food, cleaning supplies, energy, services): 340 000 Catering staff: 460 000 Cleaning staff: 460 000 Laundry: 46 000 M. Marcel evaluates the depreciations and the overhead are fixed costs, while the laundry and the procurement vary depending on the activity. Finally he thinks that half of staff costs (catering and cleaning) are variable and half fixed. What is the turnover closer to the breakeven point? 1992 000 1995 000 2 155 200 None of the above 4
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