Outdoors Unlimited operates a fishing lodge in northern Canada. The following cost information has been developed by the company's accountant:

Fixed costs:

Salaries . . . . . . . . . . . . . . . . . . . . . . . . . $\$ 68,000$

Mortgage payments. . . . . . . . . . . . . . . . . . . . . . 24,000 Taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000 Variable costs (per guest):

Fishing tackle. . . . . . . . . . . . . . . . . . . . . . . $\$ 20$

Food . . . . . . . . . . . . . . . . . . . . . . 80 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 1. In planning for its 2000 summer season, Outdoors Unlimited does not know exactly how many guests to expect and, hence, how much to charge per guest. Prepare a flexible budget showing expected total costs at $200,300,400$, and 500 guests.
2. Assume that Outdoors Unlimited conservatively estimates 300 guests for the year. If it wants to earn profits of $\$ 100,000$ for the 300 guests, how much should it charge per guest?