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Muncey Fishing Charters consists of one boat with a capacity of 15 passengers, not including the crew. Muncey offers only one charter package: a
Muncey Fishing Charters consists of one boat with a capacity of 15 passengers, not including the crew. Muncey offers only one charter package: a one-half day fishing trip off the coast. Because of weather, crew availability, and so on, Muncey operates an average of 20 days a month and only makes one trip on the day it operates. Price and cost information for the Muncey follows: Selling price per passenger-trip Variable cost per passenger-trip Fixed cost per month Income tax rate $ 355 $ 105 $ 68,000 24% A passenger-trip is considered to be one passenger per trip. Required: a. Compute Muncey's break-even point in number of passenger-trips per month. b. How many passenger-trips per month must Muncey sell to earn $7,790 after taxes?
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