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Need help with questions 6 and 7. This problem contains three parts. In Part A, you are asked to determine the parameters of the profit
Need help with questions 6 and 7.
This problem contains three parts. In Part A, you are asked to determine the parameters of the profit function the contribution margin and the fixed costs. You should not move on to Parts B and C until you get Part A correct, or until you use up all of your tries. The correct profit function parameters will be given to you after you have completed Part A - you should use these parameters in Parts B and C. The problem is worth 20 points. Parts A and B are worth eight points each; Part C is worth four points. To get the eight points for Part A, you must answer both questions correctly; to get the eight points for Part B, you must answer all four questions correctly. You get six tries on Part A, eight on Part B, and four on Part C. Charleston Carriage Company offers guided horse-drawn carriage rides through historic Charleston, South Carolina. The carriage business is highly regulated by the city. The fare for al passengers is $20.50. Charleston Carriage has the following monthly operating costs: Fee paid to the city of Charleston Cost of souvenir set of postcards given to each passenger Monthly cost of leasing and boarding the horses Carriage drivers (tour guides) are paid on a per-passenger basis Monthly payroll costs of non tour guide employees Marketing, web-site, telephone, and other monthly fixed costs 16% of ticket revenue $0.40 per set $42,000 $2.90 per passenger $7,500 In addition to these costs, Charleston Carriage pays a brokerage fee of $1.10 per ticket sold by brokers. On average, 65% of tickets are issued through these brokers, 35% are sold directly by Charleston Carriage Charleston Carriage has several questions about its monthly revenues, costs, and profits in 2018 REQUIRED [ROUND YOUR ANSWER TO PART A, QUESTION 1 TO THE NEAREST CENT; ROUND ALL OTHER ANSWERS TO THE NEAREST UNIT OR NEAREST DOLLAR.] Part A (6 tries:_8points) 1. What is the estimated monthly contribution margin per passenger for Charleston Carriage in 2018? 13.2100 2. What are the estimated total monthly fixed costs for Charleston Carriage in 2018? 57500Step by Step Solution
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