CLASS EXERCISE: TOUR COSTING

Answer the question in Costing Sheet that being provided in Student’s Answer Format

You are working for Marvelous Tours based in Kuching, Sarawak. The company has
introduced a new outbound tour package called "Stunning Hong Kong" for the very first time.
As the leader of this project, your employer wants you to cost out the tour and decide on the
sales price to the public based on the following information.

The tour departs from Kuching International Airport on Wednesday morning and returns on
Sunday Morning. The reasonable number of tour participants is thirty. The flight ticket,
inclusive of airport tax, will be MYR1800.00 per person for a round trip. For ease of
transportation, the company will charter an executive coach from Hung Hin Coach Limited in
Hong Kong. The coach will cost MYR4000.00, all-inclusive.

Upon arrival at Hong Kong International Airport, meet and transfer to a hotel by local
representatives. The group will stay at the Holiday Inn in Tsim Tsa Tsui. The room rate is
HKD220.00++ for double occupancy (10% service charge). All room rates are inclusive of
breakfast. The escort's room quoted at HKD120.00 nett per night . Each client entitled to
two luggage movements, and the Bellhop's charge is HKD15.00 for every luggage they
move. After check-in at the hotel and having their lunch (own participant expenses), the
group will have a half-day city tour guided by a step-on guide with a fee of MYR800. After
the city tour, there will be a welcome BBQ Set Seafood dinner at the hotel, which cost
MYR80++ (10% service charge) per person, complimentary for the escort and driver. After
dinner, the tour members will go back to the hotel.

On the second day, after breakfast, the group will be transferred to the culturally themed
Ngong Ping Village (HKD180.00 per person, inclusive of guide fee), a highland in the
western part of Lantau Island. It hosts Po Lin Monastery and Tian Tan Buddha amidst the
hills, which is about 34 m tall. There are several hills nearby which are also an attraction to
tourists. After the visit, the group will have their lunch at a local restaurant at their own
expense. After lunch, the group then proceeds to Tai O Fishing village at about 15 minutes
ride. The Tai O Fishing Village is a quaint and picturesque village, with the traditional stilt
houses predominant of the old Southern Chinese fishing villages, one of the few remaining
places where you can still see them in Hong Kong. The group will have a boat ride
(MYR20.00 per client) around the harbour and the stilt houses for a close-up view. About 3
pm, the group will be transferred back to Mong Kok and continues the rest of the day with
shopping activities at the Ladies' Market. Before ending the day, the group will have their
dinner at Jardine's Restaurant with a total cost of HKD5,555.00.

On day three, after breakfast, the group will be transferred to the Hong Kong Space
Museum, the first local planetarium built to popularize astronomy and space science. The
entrance fee per person is HKD32.00. The group will have lunch at Jesse's Restaurant
(MYR50.00 per person). After lunch, the group will experience a tram ride up to Victoria
Peak to see the stunning 360-degree panoramic view across Hong Kong (HKD30.00). The
group then will visit Madame Tussauds Hong Kong, located at the Peak Tower (HKD180.00
per person). It boasts over 100 lifelike wax figures of celebrities worldwide and offers visitors
a unique and interactive experience. Dinner will be served at the Victoria Garden Restaurant
at the cost of MYR70.00 per person, with no charge for the escort. After dinner, the group
will depart back to the hotel.

On day four, the group will have a full day trip at Ocean Park, known as a marine mammal
park, Oceanarium, animal theme park and amusement park. The theme park has various
attractions and rides, including four roller coasters and animal exhibits with different themes,
such as a giant panda habitat, rainforest and polar displays, and an aquarium featuring the
world's largest aquarium dome (HKD345.00). The group will have a farewell dinner at the
hotel's restaurant. The cost is HKD180.00 per person.

On the last day, after breakfast, the group will check out and transfer to the Avenue of Stars
to enjoy the stunning views across Victoria Harbour before they depart to the airport for a
return flight back to Kuching. Supplies, advertising, and overhead are estimated at
MYR30.00 per person. The escort's salary for this tour is MYR1,500.00. The profit margin is
set at 20 per cent of the sales price. There is no additional cost associated with this tour.

Determine the SELLING PRICE per person of this tour.

Note: HKD1.00 is equivalent to MYR0.55