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BUSM2567 Assessment 1 Lucro Island Answer Booklet-2
Decision Making Assesment 1
Course
Business Decision Maaking (BUSM2567)
26 Documents
Students shared 26 documents in this course
University
Royal Melbourne Institute of Technology
Academic year: 2024/2025
Uploaded by:
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Class Day & Time: Thursday 4:
Lecturer: Chieng Joselyne
Group Number:
Student Name RMIT Student ID
Pranshu Patel 4094915
Jacob Miller 4082067
Chau Ho Wai Howard 4097154
Jared Paduga 4089218
Assessment 1
Team Answer
Booklet
Answers
Question 1 | 4 marks
Format – Written
Type your answer in the box below.
The most impactful and relevant decision to the success of the organization was the
strategic decision made regarding the layout of the hotel. To keep the hotel as “hip”
and entertaining as possible the acquisitions of the assets known as the fun games'
parlour and the travel agent was made. The decision was made in consideration of the
targeted demographics preferences of hotel facilities, these two acquisitions are
extremely effective at providing the entertainment and activities that youthful tourists
desire, specifically schoolies groups. So, with these additions, we could entice our target
demographic of younger tourists to a much greater affect. Of course this came with
major trade-offs, specifically regarding the absence of a cafe/restaurant. However,
young tourists are typically less inclined to go for a substantial meal and instead often
go for the more affordable approach from a local supermarket, therefore the
alternative decision ultimately provided much fewer benefits.
Furthermore, both the tactical decision of investing limited revenue towards staff and
the operational decision of investing greater amounts of the working employees
towards the 12 occupancy rooms, influenced the effectiveness and fluidity of the daily
operations. With limited staff, we aimed to effectively create a familiarity amongst the
operations of the hotel in our consumers. The lower amounts of staff hired and working
at the same time, the greater connections our travellers can make with our staff. In a
similar vein, the staff dedicate more time and energy towards the rooms with greater
occupancy as they are not only holding more people to appreciate their efforts, but
often higher occupancy rooms hold multiple groups of individuals and with more staff,
they can develop relationships between not only staff and consumer but also between
consumers themselves. Whilst the lower supply of staff could create greater issues
during periods with high leave or sick leave rates, ultimately, we believe generating
effective relationships outweighs the possible consequences of this decision. Creating
new relationships are the key to core memories and greater experiences and we strive
to “create thrilling adventures through quality entertainment and new relationships at
an affordable and worthwhile price”.
Question 3a | 1 marks
Format – Written and/or screenshot
Answer box. Show all workings.
Breakeven Units=Total Fixed Costs ÷ CM
CM=Unit selling price-variable cost per unit= 40 – 35 = 5
BEP (in units) = $30,000 ÷ 5 = 6000
BEP (in sales dollar) = BEP(in units) * Unit selling price
= 6000*40= $240,
Question 3b | 0 mark
Format – Written and/or screenshot
Answer box. Show all workings.
Margin of Safety =Actual (or Expected) Sales−BEP (in sales)
Margin of Safety= (6500*40)-240,
=$20,
Question 3c | 1 marks
Format – Written and/or screenshot
Answer box. Show all workings.
Total Fixed cost (before)= $
Total Fixed cost (now)= $
Variable cost per unit (before)= $
Variable cost per unit (now)= $
CM=40-16=
BEP (in units)= Total fixed cost/CM
= 24000/25= 960
BEP (in sales dollars)= BEP(in units)unit sale price = 96040= $38,
Question 3d | 0 mark
Format – Written
Type your answer in the box below.
Answer box. Show all workings.
Cost Formula: 100,000 + (1,650 * activity level)
Total January Expenses Estimation = Cost Formula: 100,000 + (1,650 * 31)
= 151,
Question 5 | 4 marks
Format – Written
Type your answer in the box below.
Strengths:
Some strengths that Carnival hotel had are A travel agency to handle all of the needs of
visitors travelling, Laundromat which allows customers to wash and dry their cloths, a fun
games parlour for an enjoyable experience it is also a cheap backpacker friendly hotel.
These all ultimately provide great convenience for consumers, ensuring they don’t have to
go out of the hotel for these functions, with such convenience it ultimately strengthens
the hotel’s effectiveness and quality of life. Customers such as Wendy mentioned that the
amenities were top of the class, “great amenities we’ll be back.”
Weaknesses:
As this hotel is intended for backpackers, customers from different demographics such as
families are not inclined to stay at this hotel. This would result in less revenue and less
profit for this business. With the hotel targeting the demographic of young tourists
looking to have fun, although the price is desirable, families may consider the hotel to be
too loud and vibrant for their ideal stay. Additionally, as there is limited staff and the
target demographic forms communities easily, families who stay and aren’t looking for
the social aspect can be neglected by staff resulting in the staff rating being -10%.
Opportunities:
The Fun Games Parlour can be used as a hub for guests from different backgrounds for
cultural exchange. It can be used for a gimmick to attract travellers to choose this hotel.
After having the experience of clearing the rats in the first year, it will be better to prevent
the rats problem in the upcoming year. The hotel can also build a strong community with
other stakeholders on the island to solve the issues of rats quickly.
Threats:
Of course, the greatest threat in this industry relates to the overall attractiveness of the
island itself, if the events and experiences offered at the island were to for some reason
significantly decline regarding anticipation and desire to go, as an organization the
Carnival hotel will subsequently lose a great deal of attractiveness and therefore
customers. Significantly the council's decision to revoke the permits of Mike’s Pistols and
Daises Music Festival proves to be a severe issue for the future of the business, with the
demographic of both suspected to align greatly, it's a major threat for the retention of
customers among the foreseeable future.
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BUSM2567 Assessment 1 Lucro Island Answer Booklet-2
Course: Business Decision Maaking (BUSM2567)
26 Documents
Students shared 26 documents in this course
University: Royal Melbourne Institute of Technology
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Class Day & Time: Thursday 4:30
Lecturer: Chieng Joselyne
Group Number:
Student Name RMIT Student ID
Pranshu Patel 4094915
Jacob Miller 4082067
Chau Ho Wai Howard 4097154
Jared Paduga 4089218
Assessment 1
Team Answer
Booklet
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