Question
The Diamond Jubilee is a floating riverboat casino that operates on the Mississippi River. The casino is open 24 hours daily and features 675 slot
The Diamond Jubilee is a floating riverboat casino that operates on the Mississippi River. The casino is open 24 hours daily and features 675 slot machines, 25 blackjack tables, 8 poker tables, 3 craps tables, and 2 roulette tables.
On average, for every $1.00 wagered at the Diamond Jubilee $0.82 goes back to the gamblers as winnings, and $0.08 covers the casino's variable costs. The remaining $0.10 goes toward covering the casino's fixed costs and contributing toward profit. The Diamond Jubilee's fixed costs amount to $27,500 per month, and the casino pays combined state and federal taxes equal to 25% of profit before taxes.
For motivational purposes, the Diamond Jubilee links some of its general manager's compensation to the casino's profitability. Specifically, the riverboat's general manager, Sapphire Sally, receives a monthly bonus equal to 5% of the casino's profit before taxes.
Required
How much do Diamond Jubilee patrons have to wager in a month for the casino to earn an after-tax and after-bonus profit of $28,500? (Note: The bonus is deductible for tax purposes, and, thus, taxes are paid on pre-bonus profit less the bonus.)
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