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I. Roppongi Car Park (60 points) Roppongi Car Park is a small paid parking lot located in central Tokyo. Roppongi has xed costs (rent of
I. Roppongi Car Park (60 points) Roppongi Car Park is a small paid parking lot located in central Tokyo. Roppongi has xed costs (rent of the land that it sits on) of 990,000 per month. They expect to charge 3,000 to park one car for one day. Assume that all customers park for the entire day. The lot has a capacity of 18 cars, and only operates on weekdays (assume a total of 20 weekdays per month). In addition, Roppongi hires a lot attendant who parks the cars and collects the cash. The attendant is paid 10% of revenues, plus 150 per car parked. 1. Given the information above, what is Roppongi's breakeven point (in number of cars parked per month)? Hint: It is not feasible (5 points) Knowing that their current operations aren't feasible, Roppongi has produced four separate plans to improve protability. Consider each plan separately. 2. Roppongi's first plan is to raise the price. Assuming that Roppongi can operate at maximum capacity, how much would they have to charge (to park one car for one day) in order to breakeven? (5 points)
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