QUESTION 1

You are part of a group of owners who wish to invest money into a new tour business. Use the information below to calculate the required information asked of you for this question, using the Bottom-Up Pricing method.

*Note*

Only find the answer to the single question being asked of you in this question; do not complete all the Bottom-Up Pricing steps. Previous steps information is provided below to assist you.

Calculate the estimated fixed costs of the business. Round to the nearest dollar.

are part of a group of owners who wish to invest money into a new tour business. Use the information below to calculate the required information asked of you for this question, using the Bottom-Up Pricing method.

New Equipment Value	$193468
Loan Amount	$386920
Interest Rate %	10%
Investment by Owners	$300485
Desired Rate of Return	10%
Income Tax Rate %	23%
Insurance Expense	$151895
Fixed Wages	$191122
Depreciation Rate %	5%
Food Cost %	15%
Variable Wage %	17%
Other Variable Expenses %	15%
Maximum # of Tour Guests per Tour	19
Average Occupancy % of Tours	69%
# of Tours per month	10