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Transcription of this question: 2.IcarusIcarus is an adventure tourism company. It has developed a family brand Of innovative tourismproducts, such as the World’s first underwater theme park. Its next objective is to build thefirst hotel in outer space by 2016. Icarus conducted market research using stratified samples Ofbusinessmen,’businesswomen and families with incomes over S 10000 000. Most said that theywould pay the proposed price Of S140000 per room per night. Although the hotel should createsignificant profits, Icarus’ Board Of Directors is concerned about both safety and financial risks.(Source: http•J.’en_wikipediaorgwiki/FiIe:Aurora-SpaceShuttIe-EO_jpg]Icarus has invested significant funds to develop safety procedures and to train the employees Of thefuture hotel. Icarus wants to protect its brand image as the most trusted adventure tourism companyin the world.The hotel will have a capacity Of 500 rooms. Originally (in 2012) Icarus forecasted the following(in S):• price per room per night (room rate): 140000• fixed costs: 10000000• variable cost per room per night: 100000.Now (in 2013) the costs Of construction, fuel and insurance have increased and affected the forecast.TO ensure a 2016 opening, Icarus has identified a potential investor. The problem is that he expectsa $2 000 guaranteed (target) profit in the first year, but Icarus has promised not to increase itsroom prices. The following shows the revised forecasted figures (in S):• price per room per night (room rate): 140000target profit required by investor: 2000000• fixed costs: 12000000• variable cost per room per night: 108The Board Of Directors are concerned that:• keeping room prices the same will reduce profits• Other adventure tourism companies are considering entering the outer space tourism market• withdrawing from the project would damage Icarus’ brand image and would cost millions Ofdollars.(a)(b)(d)(e)Describe two advantages to Icarus of having a family brand.Explain one advantage and one disadvantage tosamples in its market research.(i)(ii)(i)(ii)Using the original forecasted figures (inbreak-even point (show all your working).Using the revised forecasted figures (inbreak-even point (show all your working).Icarus2012),2013),Of using stratifiedcalculate Icarus ‘calculate Icarus ‘Using the revised forecasted figures, construct a fully labelled break-evenchart for 2013.Explain the limitations Of the 2013 break-even chart from part (i) as adecision-making tool for Icarus.Analyse Icarus ‘ decision to open the first hotel in outer space.[4 marks][4 marks][2 marks][2 marks][4 marks][3 marks][6 marks]

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