You run an outdoor expedition company that takes visitors onscuba adventures in theJohn Pennekamp Coral Reef State ParkinKey Largo.Tours and adventures last4 to 8 hours and your master diving guides are paid per day, not a salary.You own 2 boats and rent a 3rdfor $2,000 per day if needed.The Park charges your company $3,000 per year for a license to give tours in the park and $4 perguestto enter the park.The Parkrequires 1 licensed guide forevery3 guestsandallowsonly5guests per boat.

1. Assuming you book a trip for 12 guests,how would you characterize the cost associated with the trip?Show work!

2. Are fixed costs always linear? Why or why not?