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DUE TONIGHT! ANSWERS ALREADY TRIED: 13724 AND 13723.64

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 Camiage Company offers guided horse-drawn carriage rides through historic Charleston, South Carolina. The company shut down in 2020 because of the Covid virus, and it doesn't expect to resume business until next year, 2022. The carriage business is highly regulated by the city, and the expected fare for all passengers in 2022 is $20.50. The company budgets the following monthly operating costs for 2022: 13% of ticket revenue $0.40 per set $43,000 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 $3.00 per passenger $8,500 $8,000 In addition to these costs, Charleston Carriage will have to pay a brokerage fee of $1.10 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. Part C [4 tries; 4 points] 7. Charleston Carriage has an opportunity to negotiate with the company that leases the horses and boards them. If Charleston Carriage expects to sell 5,337 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)? 13720 Submit Answer Incorrect. Tries 3/4 Previous Tries