My Company / Your Company, My Company, and Your Company provide rafting tours on Big Bear River. My Company pays tour guides fixed salaries. It budgets salaries expense at $160,000 per year. Your Company pays tour guides $40 per rafter served. Rafters are charged $50 per tour. Both companies expect to carry approximately 4,000 rafters during the year.

A- What is the net income for each company.

b. In an effort to lure rafters away from Your Company, My Company lowers the price per rafter to $39. What is the revised net income for both companies. Assume that My Company serves 6,000 rafters who each pay $39 per tour, while Your Company serves only 2,000 rafters who pay $50 per tour. c. Assume you are president of Your Company. Offer defensive strategies. d. Suppose Your Company matches the $39 price set by My Company. What is the impact on net income for both companies assuming that each company serves 4,000 customers and why?