THH3113 Cost and Performance Management
Task:
Required:
The DOSM, head of the RM committee has asked you to prepare the following and submit a report to the RM committee with the following requirements below to decide
Task 1: Prepare a short 6 to 8 mins video presentation about your findings and recommendations to the RM committee of Purple Resorts.
The DOSM would like to see these following in the video Presentation for the committee
1. The Forecasted total cost and revenue for Danny’s Proposal and normal occupancy
2. The Break-even units in rooms and dollars
3. Comparison of Danny’s proposal with the normal occupancy and which would be yielding more?
Task 2: Forum Discussion
Task requirements:
Develop (thread) for online discussion based on the report by uploading your executive summary from Task3C onto LMS discussion forum
B. Body of the Report (total 22.5 Marks) (body of the report should comprise the following)
1. Cost Analysis (Here you must differentiate cost as fixed cost / variable cost and state the reason why they are fixed / variable related to their cost behaviours and recommendations to transform from variable to fixed costs or would that be better to stay as variable costs according to the cost behaviour and driver.)
2. Break even Analysis: (Here calculate your BEP using the BEP formula so you need your Fixed cost and variable cost per unit calculated to find out what the Breakeven rooms for the week and propose the committee what would be the BEP in no. of rooms and dollars
3. Calculate and Analyse ADR, REVPAR and REVPAR index (Here you need to calculate the ADR per day and REVPAR per day with the data provided for both the situations one with.Danny’s proposal and one with the normal occupancy ) and comment on the same
4. Calculate and Analyse the dollar difference & % difference in her total revenue: Here Calculate and Analyse the dollar difference & % difference in her total revenue compare which offer would yield more if committee agree to take the offer from Danny or would she be better off not taking that offer?
