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case study - Manager 1 6 30 180 Instructors/Child-care...

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Chapter 8 CASE STUDY #1 Employees Number Days Worked Hours Worked Hourly Cost T otal Cost Ski Instructors & Ski Patrol 275 100 7 20.00 3,850,000 Lift Attendants, Maintenance & Grooming 140 130 10 18.00 3,276,000 Kitchen Staff 50 130 8 12.00 624,000 Equipment & Fuel Costs 60 130 6 65.00 3,042,000 Base Budget Minus 5% Revenue Lift Ticket Sales Weekend (45% * 292,500 * $53.70) 7,068,263 6,714,849 Midweek Sales (55% * 292,500 * $46.50) 7,480,688 7,106,653 Lessons (10% * 292,500 * $90) 2,632,500 2,500,875 Food Sales (292,500 * $4) 1,170,000 1,111,500 State Subsidy 2,000,000 2,000,000 Total Revenue 20,351,450 19,433,878 Expenses Management 1,800,000 1,800,000 Ski Instructors & Ski Patrol 3,850,000 3,657,500 Lift Attendants, Maintenance & Grooming 3,276,000 3,276,000 Kitchen Staff 624,000 624,000 Benefits 2,865,000 2,807,250 Energy 2,240,000 2,240,000 Fuel and Equipment Costs 3,042,000 3,042,000 Food Costs (40% of food revenue) 468,000 444,600 Insurance 1,950,000 1,852,500 Total Expenses 20,115,000 19,743,850 Profit/(Loss) 236,450 (309,973)
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#2 Number Hours Hourly Wage T otal Cost
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Unformatted text preview: Manager 1 6 30 180 Instructors/Child-care personnel 4 6 20 480 Total Fixed Costs 660 Daily Fee 109 Food 9 Contribution Margin 100 Break Even (fixed cost / contribution margin) 6.60 #3 Acquisition ($4,100,000) Overhaul (PV of $750,000 in year 7) ($437,618) PV of 15 year Power Savings Annuity $4,793,308 NPV $255,690 #4 Big-Mouth Whisper-Quiet Acquisition Cost $850,000 $600,000 PV of Operating Costs 299,582 335,504 Net Present Cost 1,149,582 935,504 Useful Life 15 10 Cost of Capital 8% 8% Annualized Cost 134,305 139,418 #5 Actual -Change in Price Change in Quantity Change in Volume Budget Days Open 115 115 115 125 Skiers per day 2,400 2,400 2,250 2,250 Average Ticket revenue 49.50 49.75 49.75 49.75 Total 13,662,000 13,731,000 12,872,813 13,992,188 Total Variance (330,188) U Volume Variance (1,119,375) U Quantity Variance 858,188 F Price Variance (69,000) U Total variance (330,188) U...
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