7/6/2023 0 Comments Hurricane island outward bound![]() ![]() Since the direct cost of per SPD is $45 and fixed overhead $30 per SPD. But, it is hard for the company toincrease the prices of the course that might result in the decline of sales made by the company. Furthermore, the reason is that the cost of programs is increasing by 15% yearly. Indeed, the School has granted 10% budget for the marketing purpose. The Hurricane has been under the major operational deficits since the school has also been using marketing tools like presentation, direct mail, and by using the alumni of the school to promote the courses, and boost sales. So, if the company focus on specific course of the program them it is also possible that it might lose the sales in coming years, and the situation can also become worst. On the other hand, remaining other categories are incurring losses instead of profit.Since the cost of caring programs exceeds the revenues generated by the programs. See Exhibit 1, and figure 1 that shows how different categories are generating net income per SBD. Meanwhile, the There are five categories of the programs, However, amongst those categories, the least losing making categories are Maine Sea and special programs. Furthermore, Maine Sea program is a much economical as compared to the other programs that school if offering the company. However, the number of enrolments in 19 students, but in 1985 it decreased to 1120 approximately by -7%. Since it also concluded that average cost of SPD has increased by 15%.įurthermore, Maine Sea program is the widely known program among the students, since this program successfully attracts the students, youths from universities, and colleges. Meanwhile, it can be determined that school is in the deficit from 1981 to date. Because, as of the financial projections of 1986, the school is underutilizing its student’s capacity and the student program capacity as well. On the other hand, the School is unable to utilize its full capacity either during theseason or in out of season. Thus, the school even cannot meet with the breakeven point. ![]() Hurricane Island Outward Bound School Case Solution ![]()
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