You are a Toronto based tour operator with a series of flights starting up from Vancouver to Montego Bay, Jamaica. The charter will operate every Sunday and the duration of your package is 7 nights. The aircraft has 179 seats and the anticipated load factor is 81%. The first rotation is Nov 06, 2022, and the last flight rotation is on April 30, 2023. Operating costs are $100,000 for each live/live and $85,000 for rotations with a ferry portion. Air taxes per person are $220. The hotel has a rate of $121 per person per night plus $12 per person per night for hotel taxes, charges and service fees. Transfer (airport to hotel return) per person is $46. Credit card fees are high, so we need to cost them in at $6. 00 per person “below the line” (non-commissionable). Travel Agent commission is 8%. Find:- 1) a. Air Cost Calculation b Hotel Cost Calculation c. Transfer Cost Calculation d. Margin Calculation (Net Margin amount pp = Add PP net costs and margin to get - Final Net Selling Price PP = $ ) e. Retail (Travel Agent) Commission Calculation ( Commission amount pp = Add Final Net Selling Price PP to get - Final Gross Selling Price PP ) f. Tax and Service Charges Calculation(Final Gross Selling Price PP = ? Final T&SC PP = ?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 4EB: Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all...
icon
Related questions
Question
100%

Costing details to use for the assignment, all are Canadian dollars-

  • You are a Toronto based tour operator with a series of flights starting up from Vancouver to Montego Bay, Jamaica.                                                                                                
  • The charter will operate every Sunday and the duration of your package is 7 nights. The aircraft has 179 seats and the anticipated load factor is 81%.                                                                
  • The first rotation is Nov 06, 2022, and the last flight rotation is on April 30, 2023.                                                                                
  • Operating costs are $100,000 for each live/live and $85,000 for rotations with a ferry portion.                                                                                                                                                                                                                
  • Air taxes per person are $220.                                                                
  • The hotel has a rate of $121 per person per night plus $12 per person per night for hotel taxes, charges and service fees.

 

  • Transfer (airport to hotel return) per person is $46.                                                                                                                                
  • Credit card fees are high, so we need to cost them in at $6. 00 per person “below the line” (non-commissionable).

 

  • Travel Agent commission is 8%.

Find:-

1) a. Air Cost Calculation

b Hotel Cost Calculation

c. Transfer Cost Calculation

d. Margin Calculation (Net Margin amount pp = Add PP net costs and margin to get - Final Net Selling Price PP = $ )

 

e. Retail (Travel Agent) Commission Calculation ( Commission amount pp = Add Final Net Selling Price PP to get - Final Gross Selling Price PP )

 

f. Tax and Service Charges Calculation(Final Gross Selling Price PP = ? Final T&SC PP = ?

 

 

Note:-

All Answers Needed in Soft Form & Don*T Copy From others.

4.      Margin Calculation:

 

 

 

Net Margin amount pp = $                                                               Final Net Selling Price PP = $ 

 

5.      Retail (Travel Agent) Commission Calculation:

 

 

 

Commission amount pp = $                                                            Final Gross Selling Price PP $

 

6.      Tax and Service Charges Calculation:

 

Final Tax, fees and service charges total Amount PP= $

 

Final Gross Selling Price PP = $                                                   Final T&SC PP = $

NOTE:

NEED  PART 4,5 & 6 ONLY ,I uploaded  part a,b,c solved for Refrences

This assignment is to be completed on an individual basis. Do not work in a group or with a partner.
Costing details to use for the assignment, all are Canadian dollars-
You are a Toronto based tour operator with a series of flights starting up from Vancouver to Montego
Bay, Jamaica.
The charter will operate every Sunday and the duration of your package is 7 nights. The aircraft has 179
seats and the anticipated load factor is 81%.
➤ The first rotation is Nov 06, 2022, and the last flight rotation is on April 30, 2023.
Operating costs are $100,000 for each live/live and $85,000 for rotations with a ferry portion.
➤ Air taxes per person are $220.
The hotel has a rate of $121 per person per night plus $12 per person per night for hotel taxes, charges
and service fees.
Transfer (airport to hotel return) per person is $46.
Credit card fees are high, so we need to cost them in at $6.00 per person "below the line" (non-
commissionable).
Travel Agent commission is 8%.
On the Costing Calculation page below, outline each formula in your calculation, provide a costing amount for
each section including the final gross selling price per person for a one-week package based on double
occupancy including a 16% margin. Add lines as you need them. Submit under Costing Assignment in
Assignments folder in our Course site.
fi
Transcribed Image Text:This assignment is to be completed on an individual basis. Do not work in a group or with a partner. Costing details to use for the assignment, all are Canadian dollars- You are a Toronto based tour operator with a series of flights starting up from Vancouver to Montego Bay, Jamaica. The charter will operate every Sunday and the duration of your package is 7 nights. The aircraft has 179 seats and the anticipated load factor is 81%. ➤ The first rotation is Nov 06, 2022, and the last flight rotation is on April 30, 2023. Operating costs are $100,000 for each live/live and $85,000 for rotations with a ferry portion. ➤ Air taxes per person are $220. The hotel has a rate of $121 per person per night plus $12 per person per night for hotel taxes, charges and service fees. Transfer (airport to hotel return) per person is $46. Credit card fees are high, so we need to cost them in at $6.00 per person "below the line" (non- commissionable). Travel Agent commission is 8%. On the Costing Calculation page below, outline each formula in your calculation, provide a costing amount for each section including the final gross selling price per person for a one-week package based on double occupancy including a 16% margin. Add lines as you need them. Submit under Costing Assignment in Assignments folder in our Course site. fi
1. Air Cost Calculation:
Total number of passengers Air tax per person
= 144.99 passengers (179*81%) * $220
= $31,897.8
Net Air Cost pp = $31,897.8||
Costing Calculations
2. Hotel Cost Calculation:
= Total number of passengers * Hotel charges
= 144.99 passengers (179*81%) * ( $121 + $12)
= $19,283.67
Net Accommodation Cost pp = $ 19,283.67
3. Transfer Cost Calculation:
= Total number of passengers * Transfer Charges per person
= 144.99 passengers (179*81%) * $46
= $6,669.54
Transcribed Image Text:1. Air Cost Calculation: Total number of passengers Air tax per person = 144.99 passengers (179*81%) * $220 = $31,897.8 Net Air Cost pp = $31,897.8|| Costing Calculations 2. Hotel Cost Calculation: = Total number of passengers * Hotel charges = 144.99 passengers (179*81%) * ( $121 + $12) = $19,283.67 Net Accommodation Cost pp = $ 19,283.67 3. Transfer Cost Calculation: = Total number of passengers * Transfer Charges per person = 144.99 passengers (179*81%) * $46 = $6,669.54
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question

 Final T&SC PP = $    ? where answer for this.?

 

Solution
Bartleby Expert
SEE SOLUTION
Knowledge Booster
Asset replacement decision
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Entrepreneurial Finance
Entrepreneurial Finance
Finance
ISBN:
9781337635653
Author:
Leach
Publisher:
Cengage