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22 22 10 10. Questions 10 and 11 are based on the following information: Tom Robbins runs a mobile discotheque in addition to his
22 22 10 10. Questions 10 and 11 are based on the following information: Tom Robbins runs a mobile discotheque in addition to his regular daytime job. His main customers are local residents giving private parties. The activities involved together with the time taken are as follows: Activity Discuss the type of guest with customer Prepare list of songs to be played Set-up and take-down equipment Play music at party Time in Hours 1.5 1.5 1.0 Variable Tom believes that his time should be charged at $25 per hour to make the business economically viable. Tom also charges $0.50 per mile from the city center to the customer as a traveling charge based on one-way mileage. Tom also hires an assistant who is paid $10.00 per hour for the time of the party (and nothing during the traveling or set-up or take-down time). Calculate the charges to a customer who lives 10 miles from the city center and gives a party for seven hours. This customer also requires special lighting which will cost Tom $50 to rent and will increase the set-up and take-down time by two hours. (a) $380 (b) $450 (c) $445 (d) $425 11. A certain customer requires that classical music be played at his party. Tom estimates that it would take an additional four hours to research this type of music and compile a playing list. Tom also feels that this request will not be repeated soon enough for the cost to be spread over any other customers, so the customer needs to be charged the full cost for the research time. Calculate the charge to this customer who lives 10 miles from the city center and gives a party for eight hours. (a) $415 (b) $460 (c) $485 (d) $480
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