The Financial Manager of Aldorf Wastoria has prepared the following flexed budget
for 2023. The Aldorf is a large hotel, which can provide up to a maximum of 22,000
guest nights per year.
Capacity
No of Guests 15,400 17,600 19,800
£ £ £
Direct Costs 231,000 264,000 297,000
Selling overhead 1,318,800 1,338,600 1,358,400
Administration overhead 900,000 900,000 900,000
Total Cost 2,449,800 2,502,600 2,555,400
Due to the recent poor weather, the Sales Manager has suggested that 15,000
guests are a more realistic target for 2023. Based on this, what are the expected
total costs for 2023?
