shut down decision section c question

ACCA PM Question BankShut down decisions3BELTONPARKRESORTBelton Park Resort is a new theme park resort located in the country of Beeland. The resort is made up of a theme park, a hotel and an indoor water park. The resort opened two months ago and is already verypopular.As all theme parks in Beeland are required, by law, to shut down in the colder month of January because of the risk of accidents, Belton Park Resort must decide whether to shut down the whole resort or just the theme park. It could choose to keep open the hotel and/or the water park.Since Belton Park Resort has not been open for long, there is limited historical data available about costs and revenues. However, based on the last two months, the following average monthly data is available:

Hotel
Number of rooms120
Average room rate per night$100
Average occupancy rate per month 90%
Average nightly spend on ‘extras’ per room $20
Contribution margin for ‘extras’*60%

Staff costs Permanent staff included in the staff costs for the hotel is the salary of $30,000 per annum for the hotel manager and $24,000 per annum for the head chef. These are both permanent members of staff who are paid for the full year regardless of their working hours.

Temporary staffThe remaining staff costs relate to temporary staff who are only paid for the hours they work. If the hotel stays open in January, half of these staff members will continue to work their currenthours because their jobs are largely unaffected by guest occupancy rates. However, the other half of the staff will work proportionately less hours to reflect the 50% occupancy rate in January as opposed to the 90% occupancy rate of the last two months.

Could you please better explain why in the solution on the temporary staff we use 50/90?

Staff costs $120,000 Less: manager’s salary($2,500)Less: chef’s salary($2,000) 50% normal hours$115,500 57,750 is 50% at reduced hours × 50/90 =32,083

Thankyou!!!