ACC2113: Maasai Mara National Reserve- Management Accounting Assignment Help

Internal Code: 1HDGH

Management Accounting Assignment Help:

Task: QUESTION 1 (20 marks) Maasai Trails generates average revenue of $8,000 per person on its five-day (and 5 nights) package tours to the Maasai Mara National Reserve, Kenya. Tours average 4 people per tour. The business has the following expenses: Insurance costs per annum $25,000 Airfares per person on tours $980 Accommodation costs per person per night $200 Total costs per person for 5 days’ meals $80 Salary of tour managers $30,000 per annum Ground transportation per person for tour $400 Park tickets and costs per person for the 5 days $140 Casual staff hire per tour $400 Other fixed costs per annum $15,000 The current expected number of bookings for the 5 day tours are 200 tours per annum. Required a) Calculate the number of package tours that must be sold for the business to break even. (8 marks) b) Calculate the current annual expected profit. (3 marks) c) Calculate the amount of revenue necessary to make a post-tax annual profit of $60,000, given a tax rate of 20%. (3 marks) d) Maasai Trails is considering hiring another tour manager (at an annual salary$15,000) which would mean fewer casual staff are needed and would therefore reduce the cost of casual staff hire to $100 per tour. Is this worthwhile for the business at its current expected number of bookings? (Justify your answer showing calculations.) (6 marks)