Hierarchical cost structure: cost classifications (LO4). Sun and Sand Hotels (S&S), an exclusive beach resort, offers all-inclusive vacations—the package price includes the room, food, and access to...

Hierarchical cost structure: cost classifications (LO4). Sun and Sand Hotels (S&S), an exclusive beach resort, offers all-inclusive vacations—the package price includes the room, food, and access to all facilities. However, alcoholic beverages and special services (e.g., boat tours) are extra. S&S offers many attractions such as an enclosed lagoon within which guests may pet dolphins. The resort also offers snorkeling and diving tours at a nearby coral reef. Sun and Sand is interested in calculating its cost to host a typical member. Customers usually are couples, and the average couple stays for three nights and four days.

Required:

Treating the number of couples as a unit of activity, identify a unit-, batch-, product- and facility level cost for Sun and Sand.