Cranmore Carriage Company

13,300 passengers

80% were adults ($25 fare) and 20% were children ($17 fare)

Monthly depreciation expense on carriages and stable. . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,700

Fee paid to the City of Dalton. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10% of ticket revenue

Cost of souvenir set of postcards given to each passenger. . . . . . . . . . . . . . . . . . . . . . . . .$0.75/set of postcards

Brokerage fee paid to independent ticket brokers (60% of tickets are issued through these brokers; 40% are sold directly by the Cranmore Carriage Company)

$1.50/ticket sold by broker

Monthly cost of leasing and boarding the horses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$52,000

Carriage drivers (tour guides) are paid on a per passenger basis. . . . . . . . . . . . . . . . . . . .$3.20 per passenger

Monthly payroll costs of non-tour guide employees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$7,750

Marketing, website, telephone, and other monthly fixed costs. . . . . . . . . . . . . . . . . . . . . . .$7,100

Sales revenue

Less:

Variable expenses

Fee paid to city

Complimentary postcards

Brokerage fee

Carriage driver wages

Contribution margin

Less:

Fixed expenses

Leasing and boarding horses

Non-carriage driver payroll expense

Depreciation expense

Other fixed operating expenses

Operating income