F1 Tours Ltd ( based in the United Kingdom) Plans to develop a package holiday for F1 fans. Designed to coincide with the F1 night race in Singapore, the all-inclusive package includes.

Return flights to Singapore. Transfers from the airport. Hotel accommodation for 9days (Half board).

Tickets to fringe events. Vouchers for use at attractions in Singapore The basic costs information provided by F1 tours Ltd includes. Fixed costs: . Chartered planes of 3 return flights with a seating capacity of 500 per plane at a cost of £50,000 per return flight.

Coaches to transfer holidaymakers from airport to hotel and back at a cost of S$2,000 per coach per round trip with a seating capacity of 50 passengers per coach. Variable cost: Hotel MBS charges S$2,880 per person (Contract with hotel states that tour operator only pay for the number of rooms actually booked).

Tickets to 10 fringe events cost S$1500. These packaged tickets are returnable up to 2 weeks before the preliminary race. . S$200 per voucher booklet for selected F&B outlets and retail therapy at the F1 race.

Assume the role of a marketing manager in F1 Tours Ltd and: 1.an exchange rate of £1 to S$1.8 2. Load factor of 80% 3. Mark- up of 30% Question 1: Calculate the per person final selling price for the tour.