Decision Making #1 Great Escapes offers guided hiking trips in Alaska. Great escapes provides a guide and all necessary food & equipment.

Currently the company provides an average of 650 number of hikers per month

Maximum capacity is 800 number of hikers per month

The daily fee charged per hiker for this service: $60 per hiker

Variable costs per hiker:

Food 5,

Guide cost 24,

Supplies 2,

Insurance 3.

Total 34.

Fixed costs per Month:

Equipment rental $ 4,500.00

Administration 2,000.00

Advertising 1,000.00

Total $ 7,500.00

Required: Determine the effect of each of the following situations on monthly profits.

You must use cell referencing to determine the effect of each situation.

#1 What is current monthly profit?

Each what-if situation is to be evaluated independently of all others.

#2 What if there is a $15 increase in the daily fee charged per hiker, which would result in a 150 decrease in the number of hikers per month What would be the new monthly profit?

#3 What-if there is a $7 decrease in the daily fee charged per hiker, which would result in a 300 increase in the number of hikers per month. The last 100 hikers would be provided services by subcontractor at a cost of $65 per hiker What would be the new monthly profit?

#4 What-if a tour agency proposes a special one-time order of 75 number of hikers at a reduced daily fee for these hikers of $45. The insurance cost will not be incurred on these hikers, since the tour agency covers this cost. There would be an additional fixed administration fee of $250

What would be the income from only the special order?