What kind of pricing approach is taken by the business here? What are the advantages and disadvantages of this pricing approach ? Discuss any other factors which need to be taken into account when considering offering this package.

Golf Course Resort Hotel

A countryside resort with golf course has the capacity 150 rooms.

1) Calculate the price per night for the package and the price for the 2-night package in order to achieve the required profit margin. The prices should be shown excluding and including VAT. (VAT is 20%) _ 2)

2) Prepare the profit and loss report to show the sales contribution margin and profits from the existing and the new package

3)Draw a break-even chart for the existing business excluding the new package.

4) What kind of pricing approach is taken by the business here? What are the advantages and disadvantages of this pricing approach ?

5)Discuss any other factors which need to be taken into account when considering offering this package.