The Financial Manager of the Grand Dubai Hotel has prepared the following flexed budget for 2024. The Grand Dubai is a large hotel, which can provide up to a maximum of 44,000 guest nights per year. Capacity No of Guests 30,800 35,200 38,600 AED AED AED Direct Costs 462.000 512,000 594,000 Selling overhead 1,918,800 1,938,600 1,958,400 Administration overhead 1,200,000 1,200,000 1,200,000 Total Cost 2,449,800 2,502,600 2,555,400 Due to the recent excessively hot weather, the Sales Manager has suggested that 30,000 guests is a more realistic target for 2024. Based on this, what are the expected total costs for 2024?

The Financial Manager of the Grand Dubai Hotel has prepared the following flexed budget for 2024. The Grand Dubai is a large hotel, which can provide up to a maximum of 44,000 guest nights per year. Capacity No of Guests 30,800 35,200 38,600 AED AED AED Direct Costs 462.000 512,000 594,000 Selling overhead 1,918,800 1,938,600 1,958,400 Administration overhead 1,200,000 1,200,000 1,200,000 Total Cost 2,449,800 2,502,600 2,555,400 Due to the recent excessively hot weather, the Sales Manager has suggested that 30,000 guests is a more realistic target for 2024. Based on this, what are the expected total costs for 2024?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 10CE: Coral Seas Jewelry Company makes and sells costume jewelry. For the coming year, Coral Seas expects...

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