Week 11 - submission Task 3A – 30% - 3rd October Sunday 11:55 pm Report on the analysis Length: XXXXXXXXXXwords Weight: 30% - Individual Report MT BULLER APARTMENT RENTALS: A selection of...

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Week 11 - submission Task 3A – 30% - 3rd October Sunday 11:55 pm Report on the analysis Length: 1250 -1500 words Weight: 30% - Individual Report MT BULLER APARTMENT RENTALS: A selection of self-contained apartments ranging from 1-5 bedrooms. Choose from luxury penthouse suites to budget family apartments. The property is in the heart of the Mt Buller Village and offers excellent ski-in, ski-out convenience and all you need for a wonderful snow holiday. You are the RM at MT BULLER APARTMENT RENTALS in Victoria, and they have 60 fully serviced Double bedrooms for guests to visit during the winter season. Sandy the property’s DOSM and you serve on the hotel’s RM boards committee headed by the DOSM. Last year 2020 the last week of winter season business records showed that the hotel had suffered a heavy blow because of the governments lockdown restriction and customers were not ready to risk their money and life because of the lockdown scenarios. This year they are getting offers from everywhere and they are worried that they will be overbooked. To make up for the loss from last year the management has decided to increase the selling price of each room by 10% for the year 2021 which was priced for $190 per night for rooms on rack rate and no discounts. The DOSM expects there is going to be an increase in all expenses by 15%, thus requires you to include the estimated increase in expenses in your calculation for 2021 winter shoulder period. The RM committee requires you to calculate differentiate explain which of their costs are fixed and variable and any recommendations to change from the variable to fixed costs or would that be better to stay as variable costs according to the cost behaviour and driver. The RM Committee is requesting you to forecast for 24th -27th September 2021 winter season Expenses from the winter period 24 – 27th September 2020 (3 nights) with 60% occupancy Casual staff wages for the three nights $3,000.00 Electricity charges for the three nights usage $1,875.00 Full time staff Salary monthly – (irrespective of the occupancy) $3,250.00 Linen cleaning for 3 nights $1,125.00 Phone and internet charges yearly charges yearly (monthly charges) $675.00 Room Cleaning charges for 3 nights $675.00 Water usage charges for 3 nights $650.00 Superannuation charges (both full time and casual) $625.00 Reservation System Fees for 3 nights $175.00 Total Expenses $12,050.00 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 3A: Your report should be presented in this format: Contents Page: A. Executive summary (250 words) (Note- this should be posted in task 3b discussion forum also) B. Body of the Report (total 25Marks) (body of the report should comprise the following) 1. Cost Analysis & Forecast: (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 forecast the expenses for 2021 (750 – 1000 words) (15 marks) 2. BEP Analysis: Calculate your BEP using the BEP formula for both years 2020 and 2021 and report any changes in BEP. (So you need your Fixed cost and variable cost per unit calculated for each room and find out what the Breakeven rooms and dollars with the current occupancy rate.) Report and explain changes in BEP when compared with 2020 after 15% increase in expenses and 10% increase in price. Discuss also how much would they yield profit in 2021 and changes in profit when compared to 2020. (500 words – excluding calculations) (10 Marks) C. References: (5 marks) Overall Report presentation with no grammar, formatting errors, proper APA style referencing (please check the video on how to properly reference and format in LMS)