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Please throughlly solve ALL parts of this question Tube Country rents circular rubber rafts that its customers use to float down the Ichituckni River. Tube
Please throughlly solve ALL parts of this question
Tube Country rents circular rubber rafts that its customers use to float down the Ichituckni River. Tube Country owns a fleet of 200 rafts, each of which is returned on the same day it is rented, and each raft can only be rented once during a business day. Rough water along the Ichituckni River often causes rafts to become scratched and leak air, so the staff at Tube Country is constantly repairing rafts before their next rental. As a result, Tube Country estim ates that 5% of its rental fleet is unavail- able for rent at any given time. Tube Country rents rafts for $5 each, and incurs $1.00 in variable costs with each raft rental. Tube Country must also pay $20,000 in fixed business costs annually. a. What is the daily effective capacity of Tube Country's fleetStep by Step Solution
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