Decision Making #4:

Decision Making #1 Great Escapes offers guided hiking trips in Alaska. Great escapes provides a guide and all necessary food and eqUipment. Currently the company proVides an average of 600 number of hikers per month MaXImum capacrty is 800 number of hikers per month Daily fee charged per hiker for this service: $50 Variable costs per hiker: Fixed costs per Month: Food 5 Equipment rental 5000 GUIde cost 20 Administration 3000 Supplies 2 Advertising 1000 Insurance 5 Total 32 9000 Required: Determine the effect of each of the following situations on monthly profits. You must use cell referenCing to determine the effect of each srtuation. #4 What-if a tour agency proposes a special one-lime order of 75 number of hikers The insurance cost will not be incurred on these hikers, since the tour agency covers this cost. There would be an additional xed administration fee of $200 What would be the income from only the special order? I:| Should the company accept this onetime special order? Explain the costs that were relevant to the decision and also explain the costs that were irrelevant to the decision. Be specic on why certain costs were relevant and others were not relevant. at a reduced daily fee for these hikers of