Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Charleston Carriage Company offers guided horse-drawn carriage rides through historic Charleston, South Carolina. The carriage business is highly regulated by the city. The fare for

image text in transcribedimage text in transcribed

Charleston Carriage Company offers guided horse-drawn carriage rides through historic Charleston, South Carolina. The carriage business is highly regulated by the city. The fare for all passengers is $19.50. Charleston Carriage has the following monthly operating costs: Fee paid to the city of Charleston Cost of souvenir set of postcards given to each passenger Monthly cost of leasing and boarding the horses Carriage drivers (tour guides) are paid on a per-passenger basis Monthly payroll costs of non tour guide employees Marketing, web-site, telephone, and other monthly fixed costs 13% of ticket revenue $0.40 per set $49,000 $2.80 per passenger $8,500 $7,500 In addition to these costs, Charleston Carriage pays a brokerage fee of $0.90 per ticket sold by brokers. On average, 60% of tickets are issued through these brokers; 40% are sold directly by Charleston Carriage. Charleston Carriage has several questions about its monthly revenues, costs, and profits in 2018. REQUIRED [ROUND YOUR ANSWER TO PART A, QUESTION 1 TO THE NEAREST CENT; ROUND ALL OTHER ANSWERS TO THE NEAREST UNIT OR NEAREST DOLLAR. Part A (6 tries: 8 points) 1. What is the estimated monthly contribution margin per passenger for Charleston Carriage in 2018? 2. What are the estimated total monthly fixed costs for Charleston Carriage in 2018? Submit Answer Tries 0/6 Part B (8 tries; 8 points) 3. What is Charleston Carriage's estimated monthly operating income in 2018 if the number of monthly passengers is 8,200? 4. How many monthly passengers would be required for Charleston Carriage to break even in 2018

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

4. Why is it that correlations do not imply causation?

Answered: 1 week ago

Question

outline some of the current issues facing HR managers

Answered: 1 week ago