Business-Finance

A group of 30 British tourists, who want to visit Dubai, have approached you to prepare a travel package for them.

​

​You are the finance head of a successful international tour and travel company.

So let's get going!

Before you share the package details and per-person cost for the trip, you must prepare a budget for the expenses.​

Calculations:

• One-way airfare from Delhi to Dubai per person = AED1000

• Cost of traveling to and from Dubai per person= 2* AED1000 = AED2000

• Cost of traveling to and from Dubai for 30 people= AED2000 *30= AED60,000

​

​

​AED60,000

Calculations:

• Cost of accommodation for one night for 2 persons = AED500

• Cost of accommodation for 4 nights for 2 persons = AED500*4 = AED2000

• Cost of accommodation for 4 nights for 30 people= (30/2)*AED2000= AED30,000

​

​

​AED30,000

Calculations:

• ​Per person cost of meals per day = AED1000

• Per person cost of meals for 5 days= ​AED1000*5= AED5000

• Cost of meals for 30 people=AED5000*30= ​AED1,50,000

AED1,50,000​

Calculations:

• ​Cost of transportation for 3 persons = AED1000

• Cost of transportation for 30 people=(30/3)*AED1000= ​AED10,000

AED10,000​

Calculation:

• ​The total cost of a trip without buffer= AED2,50,000

• Buffer amount= (20/100)* AED2,50,000​= AED50,000

• The total cost of the trip with buffer​= AED2,50,000+AED50,000= AED3,00,000

​

AED3,00,000

​

Calculations:

• Profit = 50% of AED3,00,000= (50/100)*AED3,00,000= AED1,50,000

• Total expenditure inclusive of profit= AED3,00,000+AED1,50,000= AED4,50,000

AED4,50,000

​

Calculations:

• ​Total budgeted expenditure= AED4,50,000

• Total no. of tourists= 30​

• Per person cost of the trip=AED4,50,000/30=​ AED15,000

​

AED15,000

​

Calculations:

• ​Cost of sightseeing = AED50,000

• Profits made earlier= AED1,50,000

• ​Profits after paying for the sightseeing= AED1,50,000-AED50,000= AED1,00,000

AED1,00,000

​

Let's go to Dubai!​

​Congratulations!

Tourists have accepted your package.​