The Dean Viljoen Lodge thereafter DVL) is situated inside the Daan Viljoen Natural Wildlife Park, approximately 20 meters from Windhoek. The lodge offers nineteen (19) unique African “kraal” inspired chalets with a choice of facies at each chalet or scrumptious meals at the Boma restaurant overlooking a large swimming pool. The lodge further offers conference facilities, meeting venues, wedding facilities, walking trails, and game drives inside the Park The manager of DVL is considering whether to open on 21 March, a public holiday (Namibia’s dance Davi, a day when the lodge has, in previous years, been closed. The lodge has a daily capacity of 1,200 visitors. if the lodge opens for business that day, it will incur additional specific fixed costs of N$29 000. the contribution from the sale of park entrance fees would be N$15 per visitor. The Number of visitors is uncertain but based on past experiences. It is expected that there is a 50% probability of receiving 900 visitors, a 20% probability of receiving 500 visitors, and a possibility of receiving 1 000 visitors.
It is expected that visitors would also purchase souvenirs at the lodge. The contribution which would be made from these sales has been estimated as follows
Probability | |
? | N$15 per visitor |
0.4 | N$20 per visitor |
0.25 | N$25 per visitor |
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