Question
Alpine Bee Collector is a pest removal service run by Rick Ketchum. Rick specializes in catching and removing bees from peoples attics and sheds and
Alpine Bee Collector is a pest removal service run by Rick Ketchum. Rick specializes in catching and removing bees from peoples attics and sheds and then sealing up the entry points to prevent the raccoons from getting back in. Each capture is a bit unique. It usually takes about two hours per call to catch the bees and seal the attic or shed. Rick is willing to work 6 days a week and 12 hours per day but he would also like to take 8 weeks vacation each winter. There are also training seminars to attend, possible sick days, and slack time. He is only out on calls earning money half the time with the other half spent at his home office waiting for a customer to call him.
Ricks van costs $13,000 per year including gas, insurance, leasing, and maintenance. Materials such as wood and wire cost $25 per call. Rick would like to make $70,000 per year.
Required
a) (4 marks) Calculate how many calls Rick will make each year.
b) (4 marks) Based on your calculation of the number of calls, how much should Rick charge per call?(Note: Depending on how you answered part (a) your answer to (b) may not be a round number)
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