For now, I can only get: the opportunity cost for canceling two proms is 860, and the opportunity cost for canceling one business event is 930.

I have no idea what the next step is.

Please, include explanations!!!!

The Lionel Gupta Limousine Company operates a fleet of 10 limousines used for weddings, prom, and business events in Washington, D.C. Mr. Gupta charges customers per car taken on contract plus an hourly fee of $80. His income statement for May follows: a flat fee of $250 per car All expenses are fixed, except for driver wages and benefits and fuel costs, which are both variable per hour. During May, the company's limousines were fully booked. In June, Mr. Gupta expects that his limousine company will be operating near capacity. Rhonda Khalifa, a prominent Washington socialite, has asked Gupta to bid on a large charity event she is hosting in late June. The limousine company Khalifa had hired has canceled at the last minute and she needs the service of five limousines for four hours. She will only hire Lionel Gupta Limousines if they take the entire job. Gupta checks his schedule and finds that he only has three limousines available that day. Gupta, however, could accept the job if he rents limousines from another company. If he were to rent limousines from another company, Gupta would still need to pay for fuel and driver wages for these cars for the Khalifa business. Mr. Gupta has asked you to do some further analysis and let him know how much he should be willing to pay for each limousine he rents from another company. In doing some further research you discover: 1. For Lionel Gupta Limousines to fulfill the Khalifa business, without renting additional limousines, he would have to (a) cancel two prom contracts each for one car for six hours, or (b) cancel one business event for three cars contracted for two hours each. 2. If Lionel Gupta Limousines does not get the Khalifa business, the three limousines currently available would go unrented. Prepare a one-page memo, possibly with attached appendices, presenting your analysis and recommendation. Your recommendation should include (a) the most that Gupta should offer another company per limousine to maximize Gupta's short-term income and (b) some reasons why Gupta may wish to offer another limousine company more than the amount you found in part (a). Assume that you wish to impress Ms. Gupta with your work and expect that he will be serving as a reference for future employment. The Lionel Gupta Limousine Company operates a fleet of 10 limousines used for weddings, prom, and business events in Washington, D.C. Mr. Gupta charges customers per car taken on contract plus an hourly fee of $80. His income statement for May follows: a flat fee of $250 per car All expenses are fixed, except for driver wages and benefits and fuel costs, which are both variable per hour. During May, the company's limousines were fully booked. In June, Mr. Gupta expects that his limousine company will be operating near capacity. Rhonda Khalifa, a prominent Washington socialite, has asked Gupta to bid on a large charity event she is hosting in late June. The limousine company Khalifa had hired has canceled at the last minute and she needs the service of five limousines for four hours. She will only hire Lionel Gupta Limousines if they take the entire job. Gupta checks his schedule and finds that he only has three limousines available that day. Gupta, however, could accept the job if he rents limousines from another company. If he were to rent limousines from another company, Gupta would still need to pay for fuel and driver wages for these cars for the Khalifa business. Mr. Gupta has asked you to do some further analysis and let him know how much he should be willing to pay for each limousine he rents from another company. In doing some further research you discover: 1. For Lionel Gupta Limousines to fulfill the Khalifa business, without renting additional limousines, he would have to (a) cancel two prom contracts each for one car for six hours, or (b) cancel one business event for three cars contracted for two hours each. 2. If Lionel Gupta Limousines does not get the Khalifa business, the three limousines currently available would go unrented. Prepare a one-page memo, possibly with attached appendices, presenting your analysis and recommendation. Your recommendation should include (a) the most that Gupta should offer another company per limousine to maximize Gupta's short-term income and (b) some reasons why Gupta may wish to offer another limousine company more than the amount you found in part (a). Assume that you wish to impress Ms. Gupta with your work and expect that he will be serving as a reference for future employment