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Jungle Jim runs a company offering Jeep tours into the African Grasslands in Kenya. He has recently increased his fleet to 10 jeeps, 10 drivers

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Jungle Jim runs a company offering Jeep tours into the African Grasslands in Kenya. He has recently increased his fleet to 10 jeeps, 10 drivers and 10 guides. Each Jeep can carry 8 tourists plus the driver and the guide. The ticket prices for a full-day tour are 175 dollars a person and a half-day tour is 100 dollars per person. Five jeeps run two half-dav tours and the remaining five run full-day tours. Jim's insurance company charges him 20 dollars per tourist regardless of the tour length. Each jeep consumes 50 dollars in fuel per day. Jim believes fuel expenses will increase 2.5% each month for the next six months. He anticipates a 2 dollar increase per ticket for full-day tours and a 1 dollar increase per ticket for half-day tours to cover the increase in fuel expenses. Jim also pays a semi-annual licensing fee of 3000 dollars to the Kenyan government. The 10 jeeps are leased through Kenyan Motors for 100 dollars per month per jeep. Each half-day guide is paid 50 dollars a tour while each full-day guide is paid 80 dollars a tour. Drivers are paid 60 dollars for a full-day tour and 30 dollars for a half-day tour. Jim believes each jeep to be 70%, 85%, 90%, 90%, 80%, and 75% full over the next six months. Help Jim estimate his profit for the next six months assuming he runs his tours 20 days each month. Tavana : COP-12

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