This problem contains three parts. In Part A, you are asked to determine the parameters of the profit function - the contribution margin and the fixed costs. You should not move on to Parts B and C until you get Part A correct, or until you use up all of your tries. The correct profit function parameters will be given to you after you have completed Part A - you should use these parameters in Parts B and C.

This problem contains three parts. In Part A, you are asked to determine the parameters of the profit function the contribution margin and the fixed costs. You should not move on to Parts B and C until you get Part A correct, or until you use up all of your tries. The correct profit function parameters will be given to you after you have completed Part A you should use these parameters in Parts Band C The problem is worth 20 points. Parts A and Bare worth eight points each Part C is worth four points. To get the eight points for Part A, you must answer both questions correctly; to get the eight points for Part B, you must answer all four questions correctly. You get six tries on Part Ar eight on Part B, and four on Part C. Charleston Carriage Company offers guided horse-drawn carriage rides through historic Charleston, South Carolin The carriage business is highly regulated by the city. The fare for a a. passengers is $19.50. Charleston Carriage has the following monthly operating costs: 17% of ticket revenue Fee paid to the City of Charleston Cost of souvenir set of postcards given to each passenger $0.50 per set $50,000 Monthly cost of leasing and boarding the horses Carriage drivers (tour guides) are paid on a per-passenger bas $3.10 per passenger Monthly payroll costs of non tour guide employees $8,500 $8,000 Marketing, web-site, telephone, and other monthly fixed costs In addition to these costs, Charleston Carriage pays a brokerage fee of $1.00 per ticket sold by brokers. On average, 70% of tickets are issued through these brokers; 30% are sold directly by Charleston Carriage. Charleston Carriage has several questions about its monthly revenues, costs, and profits in 2017 REQUIRED CROUND 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 2017? 2. What are the estimated total monthly fixed costs for Charleston Carriage in 2017? HE Tries 0/6