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(b)
(i) Analyze, for each of in-branch and online bookings, the net operating profit and the net operating profit percentage for (i) Package, (ii) Adventure and (iii) Prestige Travel holiday products.
Net Operating Profit Items | Package | Adventure | Prestige | Revenues: | | | | Revenue from in-branch bookings | 9,000,000 | 3,000,000 | 85,500,000 | Revenue from online bookings | 81,000,000 | 57,000,000 | 9,500,000 | Total Revenues | 90,000,000 | 60,000,000 | 95,000,000 | Expenses: | | | | Cost of sales | (54,000,000) | (39,000,000) | (71,250,000) | In-branch holiday order processing (SK$600) | (1,800,000) | (900,000) | (10,260,000) | Online holiday order processing (SK$200) | (6,000,000) | (6,000,000) | (380,000) | Late booking processing (SK$400) | (4,620,000) | (1,512,000) | (456,000) | After-sales queries/complaints processing (SK$550) | (4,900,500) | (1,732,500) | (7,837,500) | Total Expenses | (71,320,500) | (49,144,500) | (90,183,500) | Net Operating Profit | 18,679,500 | 10,855,500 | 4,816,500 |

Number of bookings: | Package | Adventure | Prestige | In-branch bookings | 3,000 | 1,500 | 17,100 | Online bookings | 30,000 | 30,000 | 1,900 | TOTAL | 33,000 | 31,500 | 19,000 | | Package | Adventure | Prestige | Late booking processing | 11,550 | 3,780 | 1,140 | After sales queries/complaints processing | 8,910 | 3,150 | 14,250 |
Net Operating Profit Percentage
Package
18,679,50090,000,00*100=20.755%

Adventure
10,855,50060,000,00*100=18.0925%

Prestige
4,816,50095,000,000*100=5.07%

(ii) Discuss how V could improve the product profitability of each of its three holiday product types.
Your answer should take into account the results of your analysis in (b) (i) and also consider any other information that would be relevant in helping V’s Board determine how it could

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