Great Escapes offers guided hiking trips in Alaska. Great escapes provides a guide and all necessary food and equipment. Currently the company provides an average of Maximum capacity is The daily fee charged per hiker for this service: Variable costs per hiker: Food Guide cost Supplies Insurance Total Variable cost per hiker Contribution margin per hiker 5 25 2 3 35 $45 650 number of hikers per month 800 number of hikers per month $80 per hiker Fixed costs per Month: Contribution margin per month Equipment rental Administration Advertising Total Fixed costs per month Current Profit of the month $ 5,000.00 2,000.00 1,000.00 $ 8,000.00 Amount $29,250 $21,250.00