Qs 6 and 7

Charleston Carriage Company offers guided horse-drawn carriage rides through historic Charleston, South Carolina. The company shut down in 2020 because of the Covid virus, and it doesn't expect to resume business until next year, 2022. The carriage business is highly regulated by the city, and the expected fare for all passengers in 2022 is $18.50. The company budgets the following monthly operating costs for 2022: 15% of ticket revenue $0.50 per set 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 $45,000 $2.90 per passenger $8,500 $8,000 In addition to these costs, Charleston Carriage will have to pay a brokerage fee of $1.10 per ticket sold by brokers. On average, 65% of all tickets sold are sold by brokers; 35% are sold directly by Charleston Carriage. Charleston Carriage has several questions about its expected monthly revenues, costs, and profits in 2022 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; 8 points) 1. What is the estimated monthly contribution margin per passenger for Charleston Carriage in 2022? 11.6100 2. What are the estimated total monthly fixed costs for Charleston Carriage in 2022? 61500 You are correct. Previous Tries Your receipt no. is 156-2932 Your answers are correct, but just to make sure that there are no rounding issues, you should use $11.61 for the estimated contribution margi 1-41 An for the estimated monthly fixed costs for Parts B and C. Carriage to break even in 20227 5297 5. How many monthly passengers would be required for Charleston Carriage to earn $115,000 per month in 20222 6. Assuming a tax rate of 31%, what must ticket revenue be in order for Charleston Carriage to earn $115,000 per month in 20227 Submit Answer Tries 0/8 Part C [4 tries; 4 points) 7. Charleston Carriage has an opportunity to negotiate with the company that leases the horses and boards them. If Charleston Carnage expects to sell 6,297 dets per month in 2022 and wants to break even each month, what's the most it could pay per month to lease and board the horses (ignoring taves)