1. Aurora Tours is a company that specializes in tour packages throughout North America. It...
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Accounting
1. Aurora Tours is a company that specializes in tour packages throughout North America. It has recently been offering weekly tour packages which include return flights from Toronto to Vancouver. A contract with Western Canada Air Travel was made for $1,XXX,XXX to use their 150-seat aircrafts for a period of 10 weeks, which are always sold to full capacity. A hotel located 20 km outside of Vancouver was contracted at $180 per room, per night, based on double occupancy, plus a service charge of $6.50 per person per night. Clients would be required to pay an additional $150 in air taxes and $65 for airport transfers. Taxes are additional for all the rates.
Calculate the following, before taxes:
Parts a., b., c., & f. are 1 mark each; Parts d. & e. are 2 marks each (8 marks)
- Cost per airplane seat for the company.
- Hotel cost per person for the company.
- Total base cost per person for the company.
- Price per client, if the tour company has a profit margin of 25%.
- Quoted price to clients (include TGSC separately).
- In which Canadian province is Vancouver situated
2. The West Coast Hotel has YYY rooms. The hotel sells daily average 120 rooms from Sunday to Tuesday, 137 rooms from Wednesday to Friday, and 175 rooms on Saturday. The average room rate is $160 per night. The rack rate for the hotel is $185 per night.
Parts a., b., c., are 2 marks each (6 marks)
- Calculate the occupancy rate for the week.
- Calculate the achievement factor for the week.
- Calculated the yield.
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