Question

1. A new entrepreneur wants to estimate the costs of an offsite team-building event for her 14 employees. She was able to gather the following information on a 3-day program in which she is interested. Use the unit technique to estimate the cost per employee of this event. Assume there will 100% participation in all activities.

Cost Elements	Cost Rate
Transportation Costs (the site is 60 miles away.)	Van rental of $109 pay day per 14 people. The van gets 16 mpg and the gas is $3.10 per gallon. Insurance costs $24 per person
Accommodation Costs (for 3 days and 3 nights)	A double-bed room holds 2 people and has a rate of $119 per night per room. Meals are $45 per day per person. A conference room costs $180 per day for a karaoke night.
Activities costs	A paintball game costs $55 per person. A night journey and a day hike, each costs $35 per person. A problem-solving and team-building exercise costs $160 per 14 people. A karaoke night costs $230 per 14 people for equipment and a DJ.

Answer 1

. A new entrepreneur wants to estimate the costs of an offsite team-building event for her 14 employees. She was able to gather the following information on a 3-day program in which she is interested. Use the unit technique to estimate the cost per employee of this event. Assume there will 100% participation in all activities.
1. Transportation cost:
Van rental (fixed) = 109*3 = 327
Insurance cost = 24*14= 336
Fuel cost = 3.8*3.1 = 11.60
(For 60 miles, the fuel needed = 60/16 = 3.80)
Total Transportation cost = 327 + 336 + 11.60 = $674.6

2. Accommodation Costs:
Bed room cost = 119*14*0.5*3 = 2499
Meals = 45*3*14 = 1890
Conference room = 180*3= 540
Total accommodation costs = 2499 + 1890 + 540 = $4929

3. Activity costs:
Painball game = 55*14 = 770
Night journey = 35*14 = 49
A day hike = 35*14 = 490
Problem-solving and team-building exercise = 160
Karaoke night = 230
Total activity costs = 770+490+490+160+230 = $2140
Total cost (1+2+3) = $674.6 + $4929 + $2140 = $7743.60
Average cost per employee = Total cost/14 = 7743.60/14 = $553.10 per employee