Solution 7.6 |
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Calculate the final selling price for the tour per person assuming the operator requires a mark-up of 40 per cent and the expected load factor is 90 per cent. You can assume an exchange rate of $1.25 to €1.00. This question is a cost plus pricing question that requires the calculation of a total costs per person before adding the mark-up of 40%. The solution starts by calculating the total fixed costs and dividing that by the expected number of soccer fans. Variable costs are also calculated to get the total cost per soccer fan.
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