Task details:Background:Cool Destinations Ltd owns a chain of backpacker lodges located throughout Australia. The company’s profits have declined over the past year. In an attempt to isolate the causes of poor performance, the company has recently introduced a costing system to estimate the cost of its major services at each lodge. The company intends to use this information to review the service pricing structure and assess the profitability of its various service lines at each lodge.Snowy Mountains Lodge is one of the busiest lodges in the Cool Destination chain. One of its main products is the provision of accommodation, which involves three main processes: reception, room maintenance and the collection of payments for accommodation. The lodge charges backpackers $40 per day for single bedrooms (double rooms are not available).Another major product is the provision of evening meals, which involves a variety of ingredients and two major processes: kitchen service (cooking and clean-up) and table service. The price of the evening meals varies between $5 and $15, depending on the menu items selected.A third product is the provision of a range of one-day and half-day tours. The lodge hires guides and provides equipment and transportation for a range of activities such as whitewater rafting, canyoning, canoeing and mountain trekking. Picnic lunches, purchased from the local bakery, are also provided for full-day tours. Tour prices vary considerably, depending on the activities included.In the past year, the Snowy Mountains Lodge provided accommodation to 2 400 backpackers, who stayed an average of 5 nights each, purchased 8 000 evening meals, 300 one-day tours and 400 half-day tours. The following data relate to the Snowy Mountains Lodge for the past year.AccommodationCostReceptionRoom maintenanceCollection of accommodation paymentsStaff salaries$50 000$105 000$60 000Equipment depreciation and insurance6 000155 0004 000Electricity3 0005 0002 500Telephone4 00002 000Building Lease*1 20030 000900Linen04 8000Consumables3 00035 0002 000*Allocated per square metre*Allocated per square metreEvening MealsCostKitchen ServiceRestaurant / table serviceStaff salaries$50 000$30 000Equipment depreciation and insurance20 00025 000Electricity15 0004 000Telephone1 100900Building Lease*1 9004 100ToursCostTour guides$200 per dayEquipment depreciation$20 000 per annumTour van depreciation$5 000 per annumFuel and van maintenance$10 000 per annumPublic liability insurance$15 000 per annumPicnic lunches$12 per person per dayOther expenses$6 000 per annum ACC202 MANAGEMENT ACCOUNTING T219 21/06/2019 16:25*AUSTRALIAN INSTITUTE OF BUSINESS AND MANAGEMENT PTY LTD © ABN: 72 132 629 979PAGE 10 OF 15 CRICOS 03171AApproved by KOI Academic Board for T2 2019ACC202Required:1. Use process costing (show all workings) to estimate:a. The cost per person of the accommodation process.b. The cost per day of the room maintenance process. Occupied rooms are maintained (i.e.vacuumed and dusted) each day.c. The cost per accommodation payment processed.d. The total cost per person per day of accommodation, on average, assuming a five-daystay.2. Assess the profitability of the accommodation service, per person per day and in total.3. Assume that the same kitchen and restaurant processes are used for each customer. Use a hybridcosting approach to estimate the cost of the following evening meals:4. Given the information about the costs of the kitchen and restaurant processes, do you believe that the evening meal service is profitable? Explain your answer.5. Describe the approach that you would take to estimate the cost of each tour.6. Given the information about the costs of the tours, do you believe that the tour service isprofitable? Explain your answer.7. In light of recent innovations within the hospitality industry what recommendations would you maketo the management of the Snowy Mountains Lodge to improve the profitability of its business? Linkthese recommendations to the quantitative analysis performed.8. How might management of Cool Destinations Ltd use this information – what strategicconsiderations may be reviewed.Task Details: Groups are to analyse the information provided, make appropriate calculations, develop recommendations and draw conclusions from their analysis. Submissions are to be in the form of a professional business report and include a title page, executive summary, table of contents, introduction, body, conclusion and reference list.Style and Format:1. Report should be typed on single sided pages, using Arial 11 font, double line spaced with 2.5 cm margins all around.2. Reference and reference list – in text referencing should be in accordance with the Harvard Anglia method. The reference list should be prepared in accordance with the Harvard Anglia method and list only those references cited in the body of the report.Research requirements: Students need to support their analysis with reference from the text and a minimum of six (6) suitable, reliable, current and academically acceptable sources – check with your tutor if unsure of the validity of your sources. Groups seeking higher grades should support their analysis with an increased number of reference sources comparable to the grade they are seeking.MealCost of ingredientsRoast$4.20Spaghetti bolognese$3.30Vegetarian burgers$3.78Fish fillets$5.40Marking Guide: Marks awarded will be based on the following criteria:1. Research 25%2. Calculations 25%3. Analysis 30%4. Report / Presentation 10%5. Conclusion 5%6. Referencing 5%Marks will be scaled to a mark out of 20.