Finance 4

1. Members of the Mangaung Junior Council intend to raise funds for Mangaung schools by hosting a dinner-dance. They intend to sell 100 tickets at R150.00 each. They can hire a conference room at Bon Hotel or Protea Hotel for the event.

Bon Hotel
- No basic fees.
- R90 per person.

Protea Hotel
- Basic fee of R3,600
- R50 per person.

Tables 1 and 2 below show the cost of hiring a conference room at Bon Hotel and Protea Hotel.

TABLE 1: Cost of hiring a conference room at Bon Hotel

\begin{tabular}{|l|c|c|c|c|c|c|}
\hline Number of tickets sold & 0 & 25 & 50 & 90 & 95 & 100 \\
\hline Total cost (in rands) & 0 & 2250 & 4500 & A & 8550 & 9000 \\
\hline
\end{tabular}

TABLE 2: Cost of hiring a conference room at Protea Hotel

\begin{tabular}{|l|c|c|c|c|c|c|}
\hline Number of tickets sold & 0 & 25 & 50 & 90 & C & 100 \\
\hline Total cost (in rands) & 3600 & [tex]$B$[/tex] & 6100 & 8100 & 8350 & 8600 \\
\hline
\end{tabular}

1.1 Write down the basic fee for Protea Hotel. (2)



Answer :

To determine the basic fee for Protea Hotel:

1.1 Basic Fee for Protea Hotel

- The basic fee for Protea Hotel is a fixed cost that does not change with the number of tickets sold.
- From the provided information, the fixed basic fee for Protea Hotel is stated as R3,600.

Thus, the basic fee for Protea Hotel is:

[tex]\[ \boxed{3600} \][/tex]