Hey Chegg, I need help with this question. It has already been answered twice on Chegg by Gabriel Daniel and Bhawna. However, they came up with 2 different answers. I have both of their answers highlighted in bold for each question listed, but I do not know who is right. Can you tell me which answer is right. Please help me answer questions 1 and 2, and part i, ii, iii, iv for Question A and Question B.

Also, can you show me how you arrive at those answers. Please show me your work step by step. I know it is asking a lot. It is very important for me. It would help me a lot. Thank you.

Adventure Expeditions offers guided back-country hiking/camping trips in Colombia Andes. Adventure provides a guide and all necessary food and equipment at a fee of $50 per person per day. Adventure currently provides an average of 600 guide-days per month in June, July, August, and September. Based on available equipment and staff, maximum capacity is 800 guide-days per month. Monthly variable and xed operating costs are as follows:

Variable Costs Per Person Fixed Costs

Food $ 5 Equipment rental $ 5,000

Guide salary 25 Administration 5,000

Supplies 2 Advertising 2,000

Insurance 8 Total $12,000

Total $ 40

Required

1. Calculate the contribution margin per person per ride. Is the answer $10

2. Determine the effect of each of the following situations on monthly prots. Each situation is to be evaluated independently of all others.

A) $12 increase in the daily fee should result in a 150-unit decrease in monthly sales.

i) Calculate profit decrease from reduced tours if there was no price increase or costs. -> Is the answer $1,500

ii) Calculate profit increase from increase in selling price. -> Is the answer $3,900 or $2,100

iii) Show the increase or decrease in monthly profit.

B) A $7 decrease in the daily fee should result in a 300-unit increase in monthly sales. However, because of capacity constraints, the last 100 guide-days would be provided by subcontracting to

another rm at a cost of $46 per guide-day.

i) Calculate profit increase from increased tours with no changes in prices or costs. -> Is the answer $2,400 or $3,000

ii) Calculate profit decrease from reduction in selling price for all tours. -> Is the answer $3,900 or $9,900

iii) Calculate profit decrease from increase cost of the last 100 tours. -> Is the answer $300 or -300

iv) Show the increase or decrease in monthly profit. -> Is the answer $3,900 or $9,900