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Management Accounting: Cost Analysis And Determining The Break Even Point And Selling Price Of An Event Package.

2111 words - 8 pages

Management Accounting Cost analysis and determining the Break even point and Selling Price of an event packageResearch, cost and price a package for an event. The package is for the executive team of a company based in London. A detailed cost analysis should be prepared. The B/E point and the selling price should be determined of the packageContentsSection 1: Introduction page 1Section2: The Package. page 2 2.1 Calculations and Tables page 3Section 3: The Breakeven Point and the Selling Price of the Package page 5 3.1What is breakeven point? page 5 3.2 How is the selling price determined page 5 3.3 The Breakeven point and the selling prices page 7Section 4: Conclusion page 13Section 5: Recommendations page 13References page 14Section 1: Introduction I have applied for the job of trainee manager in a specialist tour operator. The post requires the ability to research, cost and price specialist packages. I have been asked to demonstrate my ability in carrying out such assignments. I am required to prepare a package for an event. The event is a fashion show in Paris; the package is for the executive team of 15 people of a company based in London. I have to prepare a detailed cost analysis for a 2 day package that includes flight costs, accommodation, and transfer from the airport to the hotel and back to the airport. The Break Even point and the selling price of the package are also determined in this assignment assuming that the operator requires a 35% mark up and expects the load factor to be: approx 50%, 60%, 70%, 80% and 90%.Section 2: The PackageThe package for the executive team on London consists out of 15 people they will be flying with a private jet to Paris to attend a Fashion Show, staying in Hyatt hotel for 2 nights and transfer from the airport in Paris to their hotel and back to the airport is arranged.The Flight:Blue Star Jets is a private jet brokerage company. With access to operators of the largest networks of luxury private charter jets, they arrange access to private aircraft for any given flight to any destination in the world. The team will be hiring B-737-BJ Boeing Business Jet it has got 18 seats. It offers a first class choice of hot meals, hot beverages and drinks served by the flight attendant plus it has comfortable sofas that can convert into bed and a spacious, separate washroom.The team will depart from London City airport and arrive at Paris Orly airport, on the 29th of October returning on the 31st of October 2007. The price details are as followed; the aircraft hire is £23,318.17 return. Landing fees are £194.33 and the fuel surcharges are £97.18 per hour, the total flight journey from London to Paris and back to London are approximately 03:09 hours, therefore the fuel surcharges are £97.18*03:09hrs= £306.12 , £3000 additional fixed costs.The total price of the flight= £23,318.17+£194.33+£306.12+£3000=£23,818.62The Hotel:The team of 15 will be staying...

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