Luca Brazi owns a fishing boat charter business he calls Sleeping With the Fishes. He runs charters 4 mornings per week, three weeks per month. Luca charges $300 per person for his charters. The boat can hold up to 12 passengers, but on average he goes out each morning with eight passengers. Groups can charter the entire boat for $3,000. Luca bought the boat two years ago for $130,000. He expects that he will be able to run charters on the boat for a total of ten years. His daughter has offered to buy the boat for $10,000 when he upgrades to a new one when this boat is ten years old. Far each charter. Luca hires a crew of two at a rate of $150/day each. The boat uses approximately 80 gallons of gas for each tour. Luca currently pays $4.15/gallon at the marina. Luca feeds his crew and guests (including himself) a lunch that costs $12 per person. Because he often doesn't know how many passengers will be on a group tour, Luca purchases lunch for 12 passengers for group tours. Luca carries insurance that costs $6,000/vear, His business license costs $624/year and the marina slip where the keeps his boat costs $2,000/month. Luca buys advertising space in various magazines for a total of $600 per quarter. Luca generally books three groups per month. All other charters include passengers who have booked individually

Question: Calculate Monthly Net Income for Group Charters and individual charters. Use whole numbers. Sales

Crew

Gas

Lunch

Total Variable Costs

Contribution Margin

Allocated Fixed Costs

Net Income