Hey Chegg, I need help with this question. A person by the name of Success 5 solved part A and almost finished part B, but forgot to finish questions ii, iii, and iv of part B. Can Success 5 finish those questions for me since he or she began the problem. Also, can they also solve part C and D and show me how he or she arrived at the answers. Show me the full work (step by step) because I need it for an assignment. Thank you

CVP Analysis

Adventure Expeditions offers guided back-country hiking/camping trips in Colombia Andes. Adventure provides a guide and all necessary food and equipment at a fee of $50 per person per day. Adventure currently provides an average of 600 guide-days per month in June, July, August, and September. Based on available equipment and staff, maximum capacity is 800 guide-days per month. Monthly variable and xed operating costs are as follows:

Variable Costs Per Person Fixed Costs

Food $ 5 Equipment rental $ 5,000

Guide salary 25 Administration 5,000

Supplies 2 Advertising 2,000

Insurance 8 Total $12,000

Total $ 40

B. A $7 decrease in the daily fee should result in a 300-unit increase in monthly sales. However, because of capacity constraints, the last 100 guide-days would be provided by subcontracting to

another rm at a cost of $46 per guide-day.

i) Calculate profit increase from increased tours with no changes in prices or costs -> profit will increase by $2,400

ii) Calculate profit decrease from reduction in selling price for all tours

iii) Calculate profit decrease from increase cost of the last 100 tours

iv) Show the increase or decrease in monthly profit.

C. A French tour agency has proposed to place a special, one-time order for 75 guide-days at a reduced fee of $45 per guide-day. The agency would pay all insurance costs. There would be additional xed administrative costs of $200.

i) Calculate the increase in revenues

ii) Calculate the increase in cost for:

a. Food

b. Guide tour salary

c. Supplies

d. Administrative

iii) Show increase or decrease in profits.

D. An Italian tour agency has proposed to place a special, one-time order for 300 guide-days next month at a special fee of $40 per guide-day. The agency would pay all insurance costs. There would

be additional xed administrative costs of $200. Assume additional capacity beyond 800 guide-days is not available.

i) Calculate the increase in revenues

ii) Calculate the increase in cost for:

a. Food

b. Guide tour salary

c. Supplies

d. Administrative

e. Opportunity cost of lost regular sales

iii) Show increase or decrease in profits.