Problem #1: Cost Estimation Caribbean Adventure specializes in flights between Toronto, Canada and George Town, Cayman Islands. It books passengers on a variety of airlines which have agreed to charge $700 per person for a roundtrip ticket. Caribbean gets a 15% commission ($105.00) from the airline for each ticket sold. Last year, Caribbean Adventures undertook an advertising campaign to increase business. Jim Smith, the president of Caribbean Adventures wants to know if the advertising campaign was successful. Caribbean advertising and revenue data from last year is presented below. month advertising revenue jan $4,400 $50,295 feb $5,500 $58,695 mar $3.900 $49,770 apr $1,400 $42.630 may $4.900 $51.450 jun $4.100 $55,965 jul $1,300 $33.180 aug $5,700 $51,765 sep $5,800 $63,735 oct $2,200 $46,095 nov $1,700 $30,870 dec $3,200 $38,850 average $3,675 $47,775 Caribbean Adventures operates out of an office in a strip mall in uptown Toronto Menthly costs are 58.290 for rent, 5845 for utilities, 51.250 for high speed intermet access, and $6.500 for management salaries. The company employs nine customer service representatives who each cam a monthly salary (including benefits of S1,260 The customer service representatives also get paid a commission of 542 (40% of Caribbean revenue) per ticket sold rent $8.200 utilities 5845 internet access 51.250 S11.540 management salaries employee salaries employee sales commission per ticket Feve por ticket $42.00 40.0% 5105.00 (1) What is the incremental revenue from spending and additional $1,000 on advertising You will have to hard code that number into cell G30 below. 2 points) incremental revenue for $100 of advertising (2) What is expected revenue without advertising? You will have to hard code that number into cell 647 below.cz points) revenue without advertising (3) Calculate the incremental profit due to $1,000 of alvertising. You will have to create your own income statement for this purpose (points) Problem #1: Cost Estimation Caribbean Adventure specializes in flights between Toronto, Canada and George Town, Cayman Islands. It books passengers on a variety of airlines which have agreed to charge $700 per person for a roundtrip ticket. Caribbean gets a 15% commission ($105.00) from the airline for each ticket sold. Last year, Caribbean Adventures undertook an advertising campaign to increase business. Jim Smith, the president of Caribbean Adventures wants to know if the advertising campaign was successful. Caribbean advertising and revenue data from last year is presented below. month advertising revenue jan $4,400 $50,295 feb $5,500 $58,695 mar $3.900 $49,770 apr $1,400 $42.630 may $4.900 $51.450 jun $4.100 $55,965 jul $1,300 $33.180 aug $5,700 $51,765 sep $5,800 $63,735 oct $2,200 $46,095 nov $1,700 $30,870 dec $3,200 $38,850 average $3,675 $47,775 Caribbean Adventures operates out of an office in a strip mall in uptown Toronto Menthly costs are 58.290 for rent, 5845 for utilities, 51.250 for high speed intermet access, and $6.500 for management salaries. The company employs nine customer service representatives who each cam a monthly salary (including benefits of S1,260 The customer service representatives also get paid a commission of 542 (40% of Caribbean revenue) per ticket sold rent $8.200 utilities 5845 internet access 51.250 S11.540 management salaries employee salaries employee sales commission per ticket Feve por ticket $42.00 40.0% 5105.00 (1) What is the incremental revenue from spending and additional $1,000 on advertising You will have to hard code that number into cell G30 below. 2 points) incremental revenue for $100 of advertising (2) What is expected revenue without advertising? You will have to hard code that number into cell 647 below.cz points) revenue without advertising (3) Calculate the incremental profit due to $1,000 of alvertising. You will have to create your own income statement for this purpose (points)
