2021-SEM3-THH3113 Cost and Performance Management for Tourism and Hospitality

Assessment Task 2: Individual Assignment 

Assessment of the assignment is based on the adequacy and accuracy of the submitted assignment. 

For all written work students must ensure that they submit their own original work. Any act of plagiarism will be severely penalized. 

Students must: 

• fully reference the source(s) of all material, even if you have re-expressed the ideas,  facts, or descriptions; 
• acknowledge all direct quotations; and  
• Not submit work that has been researched and written by another person. 

Your work will be assessed in terms of the following criteria: 

1. Effectiveness of communication – i.e. readability, legibility, neatness, completeness, and  presentation 
2. Demonstrated understanding of the subject matter covered – This will be evidenced by  your ability of submitted answers. 

Certain aspects of these questions may require some assumptions to be made. Therefore,  different answers are very acceptable. For ease of marking please specify these if you think it clarifies your decisions and responses.  

Your assignment must be submitted into the Turnitin drop box on LMS.

THH3113 COST AND PERFORMANCE MANAGEMENT FOR TOURISM AND HOSPITALITY (2021 Sem 3) – Due Date: 9th January 2022 Sunday 11:55 pm 

Analysis and Report (20 marks. Approximately 1000 – 1250 words) 

The DOSM of Purple Events is asking you the revenue manager to work on the pricing and cost analysis for the yearly Australia tattoo event in Melbourne. As the revenue manager of Purple Events  Australia Pvt Ltd, an events management company based in Melbourne, you are asked by your DOSM  to critically evaluate the following and report on the same by categorizing costs and critically appraise & evaluate cost drivers with emphasis on cost drivers in relation to which offer is best acceptable for the business.  

The event is a trade show to be held in Melbourne on the 20th of February. The event is all about  One massive day of tattoos, art, and entertainment, the venue chosen is the Melbourne Exhibition  Centre. International tattoo artists come together under one roof to showcase their work. Visitors will have the chance to meet their next (or first!) artist, research the latest trends, and even treat themselves to a tattoo on the spot.  

They are expecting: 1500 Visitors. These are the following information that Purples DOSM has  researched and Budgeted for the 2022 event

The DOSM wants you to analyze and categorize costs according to their behavior differentiate costs related to pricing and cost control techniques according to the various cost drivers and behaviors the costs that can be controlled and reduced to make more yield by not compromising on service. The RM is required to calculate the total expense and determine the ticket entry selling price for the event. The DOSM requires standard pricing to be calculated with 150% profit on the cost (expenses).

Required: 

1. Cost Analysis: (Here you must differentiate cost as fixed cost / variable cost and state the  reason why they are fixed / variable) (750 – 1000words) (7.5 Marks) 
2. Differential Pricing: The DOSM requires you to determine differential pricing for the  different categories of people that will be visiting the event in February 

Student’s price is to be calculated with 50% profit on cost; adults’ full pricing with 100% profit; kids pricing is to be calculated with 25% profit on cost; senior citizens pricing to be  calculated at 37.5% and standard pricing to be calculated with 150% profit on the cost  (expenses) (7.5 marks) 

3. Report Presentation with no errors is awarded (5 marks)

(you can use Microsoft Excel to work on your assignment calculation part and import it to  Microsoft Word when writing your report. Please use proper referencing where needed  using APA style) 

Further Instructions: 

1. Your assignment must be submitted no later than the Sunday ending week 6 ( 11:59  PM.) Assessment tasks submitted after the due date, without prior approval or arrangement,  will be penalized by ten percent. Requests for an extension of time must be made with your lecturer and based on Special Consideration guidelines using the special consideration form. 2. It is preferred you do your assignment using Microsoft Word  
2. This assignment must be handed in for successful completion of the course and will count as 30 marks toward the final mark. 
3. All assignments are to be uploaded to the Turnitin link 

Your report should be in this format: 

Contents Page: 

1. Report Overview (100 – 150 words)  
2. Body of the Report (Total 20 Marks) (body of the report should comprise of the following) 1. Cost Analysis: (Here you must differentiate cost as fixed cost / variable cost and state the  reason why they are fixed / variable) (750 – 1000words) (7.5 Marks) 
3. Differential Pricing: The DOSM requires you to determine differential pricing for the  different categories of people that will be visiting the event in February 

Student’s price to be calculated with 50% profit on cost; adults’ full pricing with 100% profit; kids pricing to be calculated with 25% profit on cost; senior citizens pricing to be  calculated at 37.5% and standard pricing to be calculated with 150% profit on the cost  (expenses) (7.5 marks) 

3. Report Presentation and references with no errors are awarded (5 marks) (You can use Microsoft Excel to work on your assignment calculation part and import it to  Microsoft Word when writing your report. Please use proper referencing where needed  using APA style)