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. The problem is worth 20 points. There is no partial credit - in order to get all of the points for a part, you must answer all of the questions for that part correctly. 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, but it hopes to resume business later this spring. The carriage business is highly regulated by the city, and the expected fare for all passengers is $18.00. The company budgets the following monthly operating costs for this year: 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 14% of ticket revenue $0.40 per set $49,000 $3.20 per passenger $8,500 $7,000 In addition to these costs, Charleston Carriage will have to pay a brokerage fee of $1.00 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 TWO DECIMAL PLACES.] Part A [6 tries; 8 points] 1. What is the estimated monthly contribution margin per passenger for Charleston Carriage in 2022? 2. What are the estimated total monthly fixed costs for Charleston Carriage in 2022? Submit Answer Tries 0/6 Part B [8 tries; 8 points] 3. What is Charleston Carriage's estimated monthly operating income in 2022 if the number of monthly passengers is 8,100? 4. In order to breakeven during a given month, how many passengers would be required? 5. How many monthly passengers would be required for Charleston Carriage to earn $116,000 per month in 2022? 6. Assuming a tax rate of 33%, what must ticket revenue be in order for Charleston Carriage to earn $116,000 per month in 2022? Submit Answer Tries 0/8 Part C [4 tries; 4 points] 7. Charleston Carriage has an opportunity to negotiate with the company that leases and boards the horses. If Charleston expects to sell 6,744 tickets 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 taxes)? Submit Answer Tries 0/4