quality craft rentalsMatt Simpson owns and operates Quality Craft Rentals, which offers canoe rentals and shuttle service on the Nantahala River. Customers can rent canoes at one station, enter the river there, and exit at one of two designated locations to catch a shuttle that returns them to their vehicles at the station they entered. Following are the costs involved in providing this service each year:

Fixed Costs Variable Costs

Canoe maintenance $ $3,250$ $ $6\mathrm{.}00$

Licenses and permits $3,9500$

Vehicle leases $6,3500$

Station lease $7,8700$

Advertising $6,9504\mathrm{.}00$

Operating costs $21,9504\mathrm{.}00$

Quality Craft Rentals began business with a $$25,500$ expenditure for a fleet of $30$ canoes. These are expected to last $10$ more years, at which time a new fleet must be purchased. Rentals have been stable at about $6,500$ per year.

Required:

Matt is happy with the steady rental average of $6,500$ per year. For this number of rentals, what price should he charge per rental for the business to make an annual $13\%$ before$-$tax return on assets using life$-$cycle costs? $($Do not round intermediate calculations. Round your answer to $2$ decimal places

price per rental $=?$ Matt Simpson owns and operates Quality Craft Rentals, which offers canoe rentals and shuttle

service on the Nantahala River. Customers can rent canoes at one station, enter the river

there, and exit at one of two designated locations to catch a shuttle that returns them to their

vehicles at the station they entered. Following are the costs involved in providing this service

each year:

Quality Craft Rentals began business with a $$25,500$ expenditure for a fleet of $30$ canoes.

These are expected to last $10$ more years, at which time a new fleet must be purchased.

Rentals have been stable at about $6,500$ per year.

Required:

Matt is happy with the steady rental average of $6,500$ per year. For this number of rentals,

what price should he charge per rental for the business to make an annual $13\%$ before$-$tax

return on assets using life$-$cycle costs? $($Do not round intermediate calculations. Round your

answer to $2$ decimal places.$)$