BEST DAY TOUR

Business Report- Best Day Tour

Business Report- Best Day Tour

Introduction

The business report is based on the launch on new tour agency based in London. The name of tour agency will be “Best Day Tour”. The tour agency will offer its services to the group of people and also the individual clients who will come to London for the Olympics. The core business idea of the Best Day Tour is based on the tourists that have come for the London Olympics as initially the services will be offered to the tourists visiting London before, during and after the of London Olympics. These tour programs will serve as the advantage for the Best Day Tour as during the Olympics, the large numbers of tourists will come.

Discussion

The Best Day Tour agency will offer three types of tours to the visitors which will be based on London based, A day trip from London and The Evening Tours which will particularly include tours at Hotels, Fashions shows and Museums.

Selling Price

 

London based

A day trip from London

Evening Tours (Based on Hotels, Fashions shows and Museums)

Price

£ 35

£ 38

£ 45

Per Unit Cost Statement

 

London based

A day trip from London

Evening Tours (Based on Hotels, Fashions shows and Museums)

CNG Expense of the Bus

£ 3000

£ 2500

£ 3500

Maintenance Expense of Bus

£ 2500

£ 2500

£ 2500

Salary of Drivers and other Employees

£ 5500

£ 5500

£ 5500

Total Cost

£ 11000

£ 10500

£ 11500

Total Tourists

£ 800

£ 800

£ 800

Per Unit Cost

£ 14

£ 13

£ 14

Monthly Cash Budget of Best Day Tour Month 1

Month 2

Month 3

Month 4

Opening cash balance

-

£ 11000

£ 18700

£ 22770

Cash from operations

£ 44000

£ 44000

£ 44000

£ 44000

Total Cash Inflow

£ 44000

£ 55000

£ 62700

£ 66770

Less: Total Out Flow:

CNG Expense of the Bus

£ 9000

£ 9900

£ 10890

£ 11979

Maintenance Expense of Bus

£ 7500

£ 8250

£ 9075

£ 9982

Salary of Drivers and other Employees

£ 16500

£ 18150

£ 19965

£ 21961

Total Outflow

£ 33000

£ 36300

£ 39930

£ 43923

Ending Cash Balance

£ 11000

£ 18700

£ 22770

£ 22847

Break-even and Target Profit for A day trip from London:

Sale of tickets = Variable expenses + Fixed expenses + Profit

Where n = number of Tourists

800 n = 3000 n + 8000 + 0

800 n - 3000 n = 8000

2200 n = 8000

n = 8000/ 2200

n = 3.63

n = 4

Target Profit = ((3000 x 20) + 8000) - (800 x 20)

Target Profit = (60000 + 8000) - 16000

Target Profit = 68000- 16000

Target Profit = £ 52000

Break-even and Target Profit for London based Tour:

Sale of tickets = Variable expenses + Fixed expenses + Profit

Where n = number of Tourists

800 n = 2500 n + 8000 + 0

800 n - 2500 n = 8000

1700 n = 8000

n = 8000/ 1700

n = 4.7

n = 5

Target Profit = ((2500 x 20) + 8000) - (800 x 20)

Target Profit = (50000 + 6000) - 16000

Target Profit = 56000 - 16000

Target Profit = £ 72000

Break-even and Target Profit for Evening tours (Jack the Ripper coach and walking tour):

Sale of tickets = Variable expenses + Fixed expenses + Profit

Where n = number of Tourists

800 n = 3500 n + 8000+ 0

800 ...