Muncey Fishing Charters consists of one boat with a capacity of 15 passengers, not including the crew.

Question:

Muncey Fishing Charters consists of one boat with a capacity of 15 passengers, not including the crew. Muncey offers only one charter package: a one-half day fishing trip off the coast. Because of weather, crew availability, and so on, Muncey operates an average of 20 days a month and only makes one trip on the day it operates. Price and cost information for Muncey follows:

A passenger-trip is considered to be one passenger per trip.


Required

a. Compute Muncey’s break-even point in number of passenger-trips per month.

b. How many passenger-trips per month must Muncey sell to earn $6,650 after taxes?

c. The owner of Muncey decides it is not worth staying in business unless it can earn at least $10,000 per month after taxes. Is this feasible? Explain. 

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: